News Corp B (NWS)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,085,000 | 9,879,000 | 10,385,000 | 9,358,000 | 9,008,000 |
| Total current assets | US$ in thousands | 4,372,000 | 4,053,000 | 4,093,000 | 4,456,000 | 3,461,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 | 2,682,000 |
| Working capital turnover | 7.66 | 11.12 | 18.09 | 7.66 | 11.56 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,085,000K ÷ ($4,372,000K – $3,055,000K)
= 7.66
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Looking at News Corp B's working capital turnover ratio over the past five years, we can see fluctuations in the efficiency of their working capital utilization. In 2024, the working capital turnover ratio stands at 7.66, a decrease from the previous year's ratio of 11.12. This decline may suggest that the company was less effective in generating sales from its working capital in 2024 compared to 2023.
Prior to 2024, News Corp B demonstrated a significant increase in efficiency between 2022 and 2023, with a jump in the working capital turnover ratio from 18.09 to 11.12. This improvement indicates that the company was able to generate a higher level of sales relative to its working capital in 2023 compared to 2022.
In 2021 and 2020, the working capital turnover ratios of 7.66 and 11.56, respectively, show that News Corp B's efficiency in utilizing working capital was relatively consistent during those years.
Overall, while the working capital turnover ratio for News Corp B has shown variability over the past five years, it is essential for the company to focus on maintaining or improving this ratio to ensure efficient use of its working capital resources in driving sales revenue.
Peer comparison
Jun 30, 2024