Fox Corp Class A (FOXA)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,598,000 | 5,961,000 | 7,206,000 | 7,202,000 | 7,946,000 |
| Total assets | US$ in thousands | 21,972,000 | 21,866,000 | 22,185,000 | 22,926,000 | 21,750,000 |
| Debt-to-assets ratio | 0.30 | 0.27 | 0.32 | 0.31 | 0.37 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,598,000K ÷ $21,972,000K
= 0.30
The debt-to-assets ratio for Fox Corp Class A has shown fluctuations over the past five years. As of June 30, 2024, the ratio stands at 0.30, indicating that 30% of the company's assets are financed by debt. This ratio has decreased compared to the previous year, where it was at 0.27.
The decreasing trend in the debt-to-assets ratio from 2020 to 2023 suggests that Fox Corp Class A has been progressively relying less on debt to finance its operations. However, the ratio increased slightly in 2024 compared to 2023 but remains lower than the levels observed in 2020 and 2021.
A lower debt-to-assets ratio generally indicates a lower financial risk and greater financial stability as it implies a higher proportion of assets are funded by equity rather than debt. Fox Corp Class A's recent ratio of 0.30 suggests a relatively conservative capital structure, which may be viewed positively by investors and creditors. It is essential for the company to continue monitoring its debt levels to maintain a healthy balance between debt and equity financing.
Peer comparison
Jun 30, 2024