News Corp B (NWS)

Short-term

Turnover ratios

The analysis of News Corp B activity ratios from September 2020 through June 2025 reveals significant fluctuations and certain underlying trends across key operational metrics.

Inventory Turnover:
The inventory turnover ratio exhibits a declining trend overall, with notable peaks early in the period—reaching approximately 25.80 times as of September 2020—and subsequent declines to around 11.54 times by September 2024. The ratio appears to have experienced cyclical variations, with intermittent recoveries, such as an increase to nearly 19.64 times at the end of 2023. The sharp decrease to 7.99 and subsequently to 3.30 in mid-2025 indicates an increasingly prolonged inventory holding period, suggestive of challenges in inventory management or a strategic shift toward holding more inventory relative to sales.

Receivables Turnover:
Receivables turnover ratios remained relatively stable, generally oscillating between approximately 5.41 and 7.03 times throughout the period. There is a tendency toward slight declines toward the latter part of the timeline, with a low of around 5.41 times in mid-2025 compared to over 7 times earlier in 2022. This pattern suggests a gradual elongation of receivable collection periods, potentially reflecting a relaxation in credit policies or deterioration in customer payment behaviors.

Payables Turnover:
The payables turnover ratio displays considerable variability, with values ranging from a low of approximately 3.22 times in mid-2025 to a high exceeding 24 times in early 2024. Notably, a peak at 24.01 times at the end of 2023 contrasts with much lower levels at earlier points, implying periods of extended payables deferral. The declining trend toward 2025 (to approximately 3.22 in June) indicates shorter payment periods to suppliers, possibly signaling strained supplier relationships or strategic cash management adjustments.

Working Capital Turnover:
This ratio displays substantial fluctuation, with values starting around 12.60 in September 2020 and declining markedly to near 3.41 by mid-2025. Periodic spikes, such as 16.07 in March 2022, suggest variable efficiency in utilizing working capital. The decline over time indicates decreasing operating efficiency or increased demands on working capital, potentially due to operational challenges or strategic shifts in inventory and receivables management.

Overall Observations:
The activity ratios collectively reveal a trend of increasing operational inefficiency over the observed period, primarily driven by elongated inventory and receivables periods, as well as inconsistent payables management. The significant reduction in inventory turnover and working capital turnover ratios signifies potential difficulties in inventory management and cash flow utilization. The variability in payables turnover indicates evolving supplier payment strategies, possibly influenced by liquidity considerations. These ratios point toward a period of operational adjustment or stress, warranting further investigation into underlying causes such as market conditions, strategic realignments, or financial health issues.

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Average number of days

The activity ratios for News Corp B reveal significant insights into the company's operational efficiency over the designated periods, focusing on inventory management, receivables collection, and payables processing.

Days of Inventory on Hand (DOH):
The DOH metric exhibits variability over the analyzed periods. Initially, the company maintained an inventory turnover timeframe around 14–15 days at the end of 2020, which gradually extended to a peak of approximately 23.69 days by the third quarter of 2023. This prolonged holding period indicates a decreasing inventory turnover rate, potentially implying either a buildup of unsold stock or strategic inventory provisioning. The subsequent periods show some reduction, with DOH decreasing to 18.58 days by the end of 2023, before rising again slightly in early 2024. Notably, the projection for the first quarter of 2025 suggests a substantial increase to 45.70 days, culminating at 110.62 days by the second quarter of 2025, signaling a pronounced slowdown in inventory turnover. Such an extension may reflect deteriorating inventory management, changes in product demand, or inventory obsolescence.

Days of Sales Outstanding (DSO):
Receivables collection periods display fluctuations within a relatively narrow range, primarily between approximately 51.52 days and 66.76 days. Early in 2020, the DSO was around 51.52 days, rising modestly over time, reaching approximately 66.76 days in the third quarter of 2024. The steady increase suggests a gradual lengthening of the collection cycle, which could be indicative of customer payment delays or changes in credit policies. In the most recent period, the DSO remains elevated relative to initial figures, pointing towards potential challenges in receivables management or shifts in credit terms extended to customers.

Number of Days of Payables:
The payables period demonstrates some volatility, but generally remains within a range of roughly 15 to 33 days. Early periods recorded payables days around 20-25 days, with fluctuations reflecting either strategic delays in payment or operational cash flow considerations. Remarkably, the later periods, particularly in 2024 and projected for 2025, record a substantial increase in payables days—extending beyond 50 days and reaching an estimated 113.32 days in the second quarter of 2025. Such a trend suggests a significant delay in settling supplier obligations, which could be a consequence of liquidity constraints, renegotiation of credit terms, or deliberate financial management strategies to conserve cash.

Overall Assessment:
The activity ratios depict a trend toward elongated inventory holding and receivables collection periods over time, coupled with increasing delays in accounts payable settlement. These patterns might reflect strategic shifts or operational challenges, possibly stemming from efforts to manage liquidity or adjusting to changing market conditions. The sharp rise in these ratios, especially in the forecast periods, warrants further investigation into underlying causes, including potential impacts on working capital management and overall operational efficiency.

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Long-term

The analysis of News Corp B's long-term activity ratios, based on the provided data, reveals insights into the company's asset utilization efficiency over time.

Fixed Asset Turnover: This ratio, measuring how effectively the company utilizes its fixed assets to generate sales, exhibits notable fluctuations during the observed period. Starting at 2.68 on September 30, 2020, the ratio rose significantly to 3.77 by December 31, 2020, and further increased to 3.89 by March 31, 2021. This suggests an improvement in the utilization of fixed assets during this timeframe. However, a decline is observed in subsequent quarters, with the ratio decreasing to 2.83 by June 30, 2021, before recovering to 3.07 and 3.24 in the next two quarters, respectively. The peak is observed on September 30, 2022, at 5.26, indicating a period of highly efficient fixed asset utilization. Following this peak, a slight decline occurs, with the ratio at 4.97 by December 31, 2022, and remaining relatively stable around 5.02 on March 31, 2023, before dipping again to 3.97 by June 30, 2023. Data beyond this point appears unavailable.

Total Asset Turnover: This ratio assesses overall asset efficiency in generating sales. It displays a generally stable trend, oscillating narrowly within the range of 0.55 to 0.63 over the analyzed period. Starting at 0.61 on September 30, 2020, it slightly decreases to 0.58 by December 31, 2020, and continues marginally downward to 0.57 on March 31, 2021. The ratio then exhibits minor fluctuations, reaching a high of 0.63 on September 30, 2022, before declining to 0.55 by March 31, 2024. The data indicates a level of steady efficiency in utilizing total assets, with no significant upward or downward long-term trends.

Overall, News Corp B's fixed asset turnover demonstrates periods of significant efficiency shifts, particularly marked by a notable peak in late 2022, whereas the total asset turnover remains relatively stable with minor fluctuations. The variations in fixed asset efficiency could reflect strategic asset investments, disposals, or operational changes, while the steady total asset turnover suggests consistent overall asset utilization efficiency across the analyzed period.