News Corp B (NWS)

Short-term

Turnover ratios

The activity ratios of News Corp B over the period from June 30, 2021, to June 30, 2025, exhibit notable fluctuations and trends across inventory turnover, receivables turnover, payables turnover, and working capital turnover.

Inventory Turnover:
The inventory turnover ratio demonstrates a declining trend from 21.79 in 2021 to 18.69 in 2022, remaining relatively stable at 18.77 in 2023, before increasing slightly to 19.56 in 2024. However, by 2025, the ratio falls sharply to 12.83. This pattern suggests that the company's efficiency in managing inventory has generally decreased during this period, with a significant deterioration evident in 2025, indicating possibly higher inventory levels or slower inventory sales.

Receivables Turnover:
Receivables turnover has remained relatively stable, with slight fluctuations, decreasing from 6.25 in 2021 to 6.91 in 2022, then marginally increasing to 6.93 in 2023. Subsequently, it dips slightly to 6.71 in 2024 and further declines to 5.31 in 2025. The reduction in 2025 indicates that the company may be taking longer to collect receivables, which could impact cash flow and suggest potential issues with credit policy or customer payment behaviors.

Payables Turnover:
The payables turnover ratio shows variability over the period. It declines from 17.17 in 2021 to 14.14 in 2022, and then to 13.27 in 2023. In 2024, it sharply increases to 18.44, indicating that the company is settling its payables more quickly. However, this ratio then drops again to 12.52 in 2025, implying that the company is taking longer to pay its suppliers or vendors. The fluctuation suggests changes in payment policies or cash management strategies.

Working Capital Turnover:
This ratio exhibits more dramatic shifts. It is relatively high at 7.66 in 2021, peaks significantly at 18.09 in 2022, then declines to 11.12 in 2023, returns to 7.66 in 2024, and further drops to 3.84 in 2025. The sharp rise in 2022 indicates an improved efficiency in utilizing working capital to generate sales or revenue, while the subsequent decline suggests reduced efficiency or increasing working capital requirements relative to sales in later years.

Summary:
Overall, the activity ratios indicate a trend of decreasing efficiency in inventory and receivables management, coupled with fluctuations in payables management. The significant drop in working capital turnover in 2025 points toward potential concerns regarding operational efficiency and liquidity management. These trends may reflect strategic shifts, market conditions, or operational challenges faced by News Corp B during this period.

---

Average number of days

The analysis of News Corp B’s activity ratios over the specified periods reveals notable trends and fluctuations across inventory management, receivables collection, and payables periods.

Days of Inventory on Hand (DOH):
From June 30, 2021, to June 30, 2023, the DOH remained relatively stable, with a modest increase from 16.75 days in 2021 to 19.44 days in 2023, indicating a slight extension in inventory holding periods. However, this upward trend becomes more pronounced in subsequent years, reaching 28.45 days by June 30, 2025. This substantial increase suggests a shift toward longer inventory storage durations, which could imply either strategic inventory buildup, changes in inventory turnover efficiency, or adjustments to inventory holdings in response to market conditions.

Days of Sales Outstanding (DSO):
The DSO decreased from 58.43 days in 2021 to 52.65 days in 2023, indicating an improvement in receivables collection efficiency during this period. Nonetheless, a reversal occurs afterward, with DSO increasing markedly to 68.71 days by June 30, 2025. This significant extension in the receivables collection period may suggest a relaxation of credit policies, challenges in collecting receivables, or a strategic decision impacting cash flow management practices.

Number of Days of Payables:
The payables period shows variability, beginning at 21.26 days in 2021 and rising to 27.51 days by 2023, reflecting a tendency to extend the period before payment to suppliers. In the subsequent year, the days payable decreased to 19.80 days, then increased again to 29.15 days in 2025. The fluctuation indicates a responsive approach to managing payment terms, possibly balancing cash flow considerations and supplier relations. The increase in payable days in 2025 aligns with the extended inventory and receivable periods, suggesting a potential overall elongation of working capital cycles.

Overall Summary:
Across the examined periods, News Corp B exhibits a trend toward longer operational cycles, with increased inventory holdings and extended receivables and payables periods, especially notable in the latest fiscal year. These patterns may indicate strategic shifts in working capital management, potentially aiming to optimize liquidity, manage cash flows, or adapt to market conditions. The notable elongation of the receivables period warrants further scrutiny to understand its implications for liquidity and cash conversion efficiency.

---

Long-term

The analysis of News Corp B’s long-term activity ratios indicates a notable improvement in the efficiency of asset utilization over the examined period. The Fixed Asset Turnover ratio experienced a steady upward trend, increasing from 2.83 times on June 30, 2021, to 3.97 times on June 30, 2023. This progressive rise suggests that the company has become more effective in generating sales from its fixed assets, reflecting enhanced operational efficiency or potential optimization of its fixed asset base.

In contrast, the Total Asset Turnover ratio demonstrated a relatively stable pattern with minor fluctuations. It was recorded at 0.56 on June 30, 2021, then increased marginally to 0.60 on June 30, 2022, slightly declined to 0.58 on June 30, 2023, and was projected to remain consistent at 0.60 in 2024 before decreasing slightly to 0.55 in 2025. The stability of this ratio over the period indicates that, relative to the total asset base, sales generation has not drastically changed, though the small variations imply a cautious improvement in overall asset efficiency and a potential slight decline toward 2025.

The data for the years after 2023 are not provided, suggesting that the focus remains primarily on the prior years' performance. Overall, it can be concluded that News Corp B has made significant strides in enhancing the productivity of its fixed assets, while its overall asset utilization has remained relatively stable with slight fluctuations, pointing to a consistent, albeit cautious, approach to managing its total assets for generating sales.