Fox Corp Class A (FOXA)

The liquidity ratios for Fox Corp Class A over the period from September 2020 through June 2025 present a nuanced view of its short-term financial health.

The current ratio, which measures the company's ability to meet short-term liabilities with its short-term assets, initially stood at a robust 4.21 as of September 2020. This indicator experienced a gradual decline over the subsequent quarters, reaching a low of 1.75 in the first quarter of 2023. While this decline indicates a reduction in the company's liquidity cushion, the ratio subsequently improved, returning to 2.91 by June 2025. Overall, the current ratio remained above the generally accepted threshold of 1.0, signaling that the firm has maintained adequate short-term liquidity throughout the analyzed period, despite fluctuations.

The quick ratio, which excludes inventory to assess more liquid assets, followed a similar downward trend from 3.51 in September 2020 to a low of 1.56 in the first quarter of 2023. Thereafter, it recovered, reaching approximately 2.70 by June 2025. This pattern suggests that although the company's ability to quickly cover its liabilities diminished initially, it subsequently regained strength, likely indicative of improved liquidity of more liquid assets.

The cash ratio, which provides the most conservative measure by comparing only cash and cash equivalents to current liabilities, decreased from 2.52 in September 2020 to 0.94 in the first quarter of 2023. It then trended upward, reaching 1.85 by June 2025. The fluctuations in the cash ratio reflect varying levels of liquid cash on hand relative to short-term obligations, but overall, the ratio remained at a level signifying sufficient liquidity in cash assets relative to current liabilities.

In summary, Fox Corp Class A demonstrated high liquidity levels at the outset of the period, which experienced a notable decline by early 2023. Post-2023, all three ratios show signs of recovery, indicating the company's ability to regain and maintain adequate liquidity positions. The ratios generally remained above critical thresholds, suggesting that, despite reductions during the period, the company preserved the capacity to meet its short-term obligations throughout the analyzed timeframe.

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Additional liquidity measure

The provided data reflects the fluctuations in Fox Corp Class A’s cash conversion cycle (CCC) over multiple fiscal periods from September 2020 through June 2025. The CCC measures the average number of days it takes for the company to convert its investments in inventory and other operational dynamics into cash flows from sales, thus serving as an indicator of operational efficiency and liquidity management.

Between September 2020 and March 2021, the CCC experienced notable variability, starting at approximately 95.33 days and decreasing to around 66.04 days. This decline indicates an improvement in the company's ability to convert its operating cycle into cash, possibly due to better receivables collection, inventory management, or payables practices. The period from March 2021 to December 2021 saw the CCC increase again, reaching nearly 94.41 days, suggesting a slowdown or inefficiency in operational cash flows during that time.

Subsequent periods show a trend of oscillation, with the CCC reaching a low of about 44.54 days in June 2023, which signifies a significantly more efficient cycle, implying faster conversion of inventory and receivables into cash. This period of improved efficiency is followed by a slight increase to 55.70 days in September 2023 and an uptick to 77.19 days by December 2023, reflecting a temporary slowdown or operational adjustments.

The most notable change occurs between December 2024 and June 2025. In December 2024, the CCC peaks sharply at approximately 127.47 days, indicating a prolonged cycle possibly due to increased receivables, inventory buildup, or delays in payment processes. By June 2025, this figure decreases dramatically to roughly 28.77 days, suggesting a significant enhancement in operational efficiency, potentially driven by strategic changes in receivables collection, inventory turnover, or payment policies.

Overall, the trend reveals periods of cyclical improvement and deterioration in the company's operational efficiency. The most recent data shows a substantial reduction in the CCC, indicating an overall movement toward a more efficient cash conversion process as of mid-2025. This pattern could reflect strategic initiatives aimed at optimizing working capital management or responding to changing operational conditions.