Fox Corp Class A (FOXA)

Cash conversion cycle

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	94.18	95.86	149.22	105.43	77.09	71.53	195.43	159.38	126.46	127.17	190.98	193.14	124.22	127.56	189.37	238.89	167.80	182.03	307.28	309.38
Days of sales outstanding (DSO)	days	61.65	64.99	75.17	59.07	53.28	66.63	76.40	58.50	55.58	63.00	80.43	60.89	57.37	63.19	80.02	59.01	56.01	72.22	85.19	66.82
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	155.84	160.85	224.39	164.50	130.37	138.16	271.83	217.88	182.05	190.17	271.41	254.02	181.59	190.75	269.39	297.89	223.81	254.25	392.47	376.20

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.18 + 61.65 – —
= 155.84

The cash conversion cycle of Fox Corp Class A has shown fluctuations over the past few quarters. The cycle measures the time it takes for the company to convert its investments in inventory back into cash.

In the most recent quarter, ending June 30, 2024, the cash conversion cycle stood at 155.84 days, indicating an improvement compared to the previous quarter's cycle of 160.85 days. This suggests that the company was able to manage its inventory more efficiently and convert it into sales faster.

Looking back over the past few quarters, the trend in the cash conversion cycle has been somewhat inconsistent. There were significant fluctuations in the cycle, with peaks observed in the fourth quarter of 2023 (224.39 days) and the third quarter of 2019 (392.47 days). These longer cycles could indicate issues with inventory management or delays in collecting receivables.

It is essential for Fox Corp Class A to focus on optimizing its cash conversion cycle to enhance its working capital management. By reducing the cycle time, the company can free up cash that can be reinvested or used to meet financial obligations more efficiently. This analysis highlights the importance of monitoring and improving the cash conversion cycle to enhance the overall financial health and performance of the company.