Fox Corp Class A (FOXA)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	10,714,000	10,378,000	11,339,000	11,123,000	10,094,000
Debt-to-capital ratio		0.38	0.36	0.39	0.39	0.44

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,598,000K ÷ ($6,598,000K + $10,714,000K)
= 0.38

The debt-to-capital ratio for Fox Corp Class A has shown a fluctuating trend over the past five years. As of June 30, 2024, the ratio stands at 0.38, indicating that debt accounts for 38% of the company's capital structure. This represents a slight increase from the previous year's ratio of 0.36.

Looking further back, we observe that the ratio was slightly higher in the 2020 and 2021 fiscal years at 0.44 and 0.39, respectively. However, in the most recent two fiscal years, the ratio has decreased, suggesting a potential improvement in the company's debt management or a shift towards a more equity-funded capital structure.

Analyzing the debt-to-capital ratio provides insights into the extent to which Fox Corp Class A relies on debt financing compared to equity. A lower ratio generally indicates a lower level of financial risk, as it suggests a smaller proportion of debt in the company's capital structure. Conversely, a higher ratio may indicate higher financial leverage and associated risks.

In conclusion, despite some fluctuations, Fox Corp Class A has maintained a relatively moderate debt-to-capital ratio over the past five years, with a recent decrease suggesting a potential shift towards a more conservative debt management approach. It will be important to monitor this ratio in future periods to assess the company's ongoing capital structure and financial risk profile.