Fox Corp Class A (FOXA)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,972,000 | 21,717,000 | 22,846,000 | 21,649,000 | 21,866,000 | 22,396,000 | 23,126,000 | 22,424,000 | 22,185,000 | 22,016,000 | 22,878,000 | 23,161,000 | 22,926,000 | 22,907,000 | 22,754,000 | 22,497,000 | 21,750,000 | 20,237,000 | 20,450,000 | 20,534,000 |
| Total stockholders’ equity | US$ in thousands | 10,714,000 | 10,554,000 | 10,252,000 | 10,384,000 | 10,378,000 | 10,185,000 | 11,607,000 | 11,521,000 | 11,339,000 | 11,200,000 | 11,275,000 | 11,430,000 | 11,123,000 | 11,081,000 | 10,917,000 | 10,791,000 | 10,094,000 | 10,114,000 | 10,334,000 | 10,320,000 |
| Financial leverage ratio | 2.05 | 2.06 | 2.23 | 2.08 | 2.11 | 2.20 | 1.99 | 1.95 | 1.96 | 1.97 | 2.03 | 2.03 | 2.06 | 2.07 | 2.08 | 2.08 | 2.15 | 2.00 | 1.98 | 1.99 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,972,000K ÷ $10,714,000K
= 2.05
Fox Corp Class A's financial leverage ratio has shown some fluctuations over the past several quarters, ranging from 1.95 to 2.23. The ratio indicates that the company's capital structure includes a significant proportion of debt relative to equity, with an average ratio of approximately 2.05 over the period analyzed.
A financial leverage ratio of 2.05 implies that for every dollar of equity, the company has $2.05 of debt. This suggests that Fox Corp Class A relies more heavily on debt financing to fund its operations and investments compared to equity.
While the ratio has varied, it has generally remained above 2.00, indicating a consistently high level of leverage. Investors and analysts typically view higher leverage ratios with caution as they indicate higher financial risk and potential vulnerability to economic downturns or changes in interest rates.
It would be prudent for stakeholders to closely monitor Fox Corp Class A's financial leverage ratio and assess the company's ability to meet its debt obligations and sustain its operations over the long term. Additionally, management may need to consider strategies to optimize the company's capital structure to balance risk and return effectively.
Peer comparison
Jun 30, 2024