Fox Corp Class A (FOXA)

The solvency ratios of Fox Corp Class A provide insights into the company's ability to meet its long-term financial obligations. Looking at the trends over the past five years:

1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Fox Corp Class A has maintained a relatively stable debt-to-assets ratio between 0.27 and 0.37, implying that around 27% to 37% of its assets are funded by debt.

2. Debt-to-capital ratio: The debt-to-capital ratio shows the percentage of the company's capital structure that is financed by debt. Fox Corp Class A has consistently kept its debt-to-capital ratio in the range of 0.36 to 0.44, indicating that approximately 36% to 44% of its capital comes from debt sources.

3. Debt-to-equity ratio: This ratio demonstrates the extent of financial leverage used by the company. Fox Corp Class A has maintained a debt-to-equity ratio between 0.57 and 0.79, with the proportion of debt relative to equity varying from 57% to 79%.

4. Financial leverage ratio: The financial leverage ratio provides insight into the company's reliance on debt to finance its operations. Fox Corp Class A has seen fluctuations in its financial leverage ratio, ranging from 1.96 to 2.15 over the past five years, indicating varying levels of leverage.

Overall, based on the solvency ratios, Fox Corp Class A has managed its debt levels relatively well, with stable trends in debt-to-assets, debt-to-capital, and debt-to-equity ratios. The financial leverage ratio has shown some variability, suggesting fluctuating levels of financial risk over the analyzed period. Further analysis and consideration of industry benchmarks would provide a more comprehensive evaluation of Fox Corp Class A's solvency position.

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Coverage ratios

The interest coverage ratio for Fox Corp Class A has exhibited some fluctuations over the past five years, ranging from as low as 1.80 in 2024 to as high as 8.26 in 2021, with values of 5.93, 5.42, and 4.80 in 2023, 2022, and 2020, respectively.

The downward trend observed from 2021 to 2024 indicates that the company may be experiencing a decrease in its ability to cover its interest expenses with its operating profits. This declining trend could raise concerns about the company's financial stability and its ability to meet its debt obligations in the future.

The substantial variation in the interest coverage ratio across the years suggests that Fox Corp's financial performance and profitability may have been subject to certain internal or external factors impacting its ability to generate sufficient earnings to cover its interest costs. It would be advisable for stakeholders to closely monitor Fox Corp's financial health and management of its debt levels in response to the observed fluctuations in interest coverage.