Fox Corp Class A (FOXA)

The solvency ratios for Fox Corp Class A from the provided data indicate notably conservative leverage levels across the analyzed periods. The debt-to-assets ratio consistently remains at zero through all reporting dates from September 2020 to June 2025, suggesting that the company either maintains no long-term or short-term debt in its capital structure or effectively manages its liabilities in a manner that results in negligible or no recorded debt liabilities on the balance sheet.

Similarly, the debt-to-capital ratio shows a consistent value of zero throughout the same periods, reinforcing the inference that debt constitutes an insignificant or nonexistent component of the company's capital structure.

The debt-to-equity ratio also remains at zero across all periods, implying that the company is predominantly equity-financed or perhaps that any debt that exists is immaterial enough not to influence this ratio.

In contrast, the financial leverage ratio presents a different picture. It exhibits values generally above 1, fluctuating around approximately 1.94 to 2.23 throughout the observed timeline. This ratio suggests that although reported debt levels are minimal or nonexistent, the company's operating leverage or other financial structures may contribute to leverage ratios indicative of slight reliance on external or implied financial instruments. The ratio's stability and modest fluctuation point towards a relatively conservative capital structure with limited debt obligations.

In summary, the analysis of Fox Corp Class A’s solvency ratios reveals a pattern of minimal to no debt financing, with ratios consistently indicating a conservative or debt-absent capital structure. The stable financial leverage ratios suggest controlled financial risk and a reliance predominantly on equity, aligning with a low default risk profile from a solvency perspective.

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Coverage ratios

The interest coverage ratios of Fox Corp Class A over the reported periods demonstrate a variable but generally stable capacity to meet interest obligations from operating earnings. Starting from September 30, 2020, the interest coverage stood at 6.93, indicating that earnings before interest and taxes (EBIT) were nearly seven times the interest expense, reflecting strong interest payment capacity during that timeframe.

Between December 31, 2020, and September 30, 2021, the ratio experienced slight fluctuations: it decreased modestly to a low of 6.09 and then increased again, reaching a peak of 8.39 on June 30, 2021. This period suggests a solid ability to cover interest expenses, with ratios consistently well above 5, indicating a comfortable margin of safety.

Starting from September 30, 2021, the ratio declined gradually over the following periods, hitting a low of 3.99 at December 31, 2023. This reduction reflects a contraction in relative earnings coverage but still indicates the capacity to service interest. The decreased ratio may suggest tightening of earnings or increased interest expenses; however, it remains above 3, which is generally considered the minimum acceptable threshold in many industry standards.

From March 31, 2024, onward, there is an observable improvement in interest coverage, with ratios rising again to over 6, reaching 8.34 by December 31, 2024. The upward trend continues into the subsequent periods, with ratios around 7 to 8, indicating a return to a stronger buffer to cover interest obligations.

Overall, the trend reflects periods of stability punctuated by temporary declines but maintains a generally adequate interest coverage ratio throughout the observation period. The data suggests that Fox Corp Class A has consistently maintained sufficient earnings to meet its interest expenses, albeit with some fluctuations that warrant ongoing monitoring to ensure continued financial resilience.