Fox Corp Class A (FOXA)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	21,972,000	21,866,000	22,185,000	22,926,000	21,750,000
Total stockholders’ equity	US$ in thousands	10,714,000	10,378,000	11,339,000	11,123,000	10,094,000
Financial leverage ratio		2.05	2.11	1.96	2.06	2.15

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,972,000K ÷ $10,714,000K
= 2.05

The financial leverage ratio for Fox Corp Class A has varied over the past five years, ranging from 1.96 to 2.15. The ratio indicates the company's level of debt relative to its equity. A higher financial leverage ratio suggests that a greater portion of the company's assets is funded by debt rather than equity.

The decreasing trend observed from 2020 to 2022 indicates a reduction in the proportion of debt in the company's capital structure. However, the slight increase in 2023 followed by another decrease in 2024 suggests fluctuation in the debt-to-equity mix over the years.

Overall, the financial leverage ratio of around 2.05 to 2.15 for the most recent years indicates that, on average, Fox Corp Class A has relied more on debt financing than equity financing, which could imply higher financial risk but also potential for higher returns. Considering the variability in the ratio over the years, it would be advisable for stakeholders to closely monitor the company's debt management practices to ensure a healthy balance between debt and equity financing.