News Corp B (NWS)

The liquidity ratios of News Corp B have shown some fluctuations over the past five years.

First, let's look at the current ratio, which indicates the company's ability to cover its short-term obligations with its current assets. The current ratio has been fluctuating, with a peak of 1.43 in 2024 and a low of 1.16 in 2022. Generally, a current ratio above 1.0 indicates the company has more current assets than current liabilities. News Corp B has managed to maintain its current ratio above 1.0 in all years, which is a positive sign for its short-term financial health.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has also fluctuated over the years, ranging from 1.00 in 2022 to 1.24 in 2021. A quick ratio above 1.0 indicates that the company can meet its short-term liabilities without relying on inventory sales. News Corp B has consistently maintained its quick ratio above 1.0, which suggests that the company has a strong ability to meet its short-term obligations.

Lastly, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has shown a similar pattern of fluctuations. The company's cash ratio has varied from 0.58 in 2022 to 0.78 in 2021. A higher cash ratio indicates a stronger ability to cover short-term liabilities with cash on hand. Despite the fluctuations, News Corp B has been able to keep its cash ratio above 0.5 in all years, signaling a reasonable level of liquidity.

In conclusion, News Corp B's liquidity ratios show a mixed performance over the past five years, with some fluctuations but generally maintaining levels above key thresholds. Monitoring these ratios going forward will be crucial to assess the company's ability to meet its short-term obligations and manage liquidity effectively.

---

Additional liquidity measure

The cash conversion cycle of News Corp B has shown fluctuations over the past five years. In the most recent fiscal year ended on June 30, 2024, the cash conversion cycle increased to 52.89 days from 41.44 days in the previous year, indicating a longer time taken to convert raw materials into cash from sales. This may suggest potential issues with managing working capital efficiently or delays in collecting receivables.

Comparing to the data from the last five years, the cash conversion cycle was relatively high in the fiscal years 2021 and 2020 at 52.38 days and 48.54 days, respectively. This could indicate historically slower processes in the company's cash conversion cycle during those periods.

Conversely, in the fiscal year ended June 30, 2023, the cash conversion cycle improved to 41.44 days, reflecting a more efficient conversion of inventory to cash compared to the surrounding years.

Overall, monitoring the cash conversion cycle can provide insight into News Corp B's working capital management efficiency and operational performance in converting investments in raw materials and inventory into sales and ultimately into cash.