News Corp B (NWS)

The liquidity position of News Corp B over the period from June 30, 2021, to June 30, 2025, demonstrates notable fluctuations and a general trend towards improved liquidity.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, decreased from 1.38 in June 2021 to a low of 1.16 in June 2022. Subsequently, it exhibited a steady upward trend, reaching 1.28 in June 2023, 1.43 in June 2024, and further increasing to 1.84 by June 2025. This progression indicates an enhancement in the company's short-term solvency position, with current assets increasingly surpassing current liabilities.

The quick ratio, a more stringent measure excluding inventory from current assets, followed a similar pattern. It declined initially from 1.15 in June 2021 to 0.96 in June 2022, suggesting a temporary weakening in liquidity. However, it recovered and improved over time, reaching 1.04 in 2023, 1.14 in 2024, and significantly rising to 1.53 by June 2025. This trend signals a strengthening in the company's ability to meet immediate short-term obligations with its most liquid assets.

The cash ratio, which considers only cash and cash equivalents relative to current liabilities, shows a similar trajectory. It decreased from 0.69 in June 2021 to 0.54 in June 2022, reflecting a temporary decline in cash liquidity. Since then, it gradually increased to 0.59 in 2023, 0.65 in 2024, and reached 0.92 in June 2025. The rising cash ratio indicates a steady increase in cash holdings relative to current liabilities, reinforcing the company's improved liquidity stance.

Overall, the data indicates that while News Corp B experienced some fluctuations in liquidity metrics during the initial period, the trend over the subsequent years has been positive. The strengthening of current, quick, and cash ratios suggests a robust and improving liquidity position, enhancing the company's capacity to meet its short-term financial commitments efficiently.

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Additional liquidity measure

The cash conversion cycle (CCC) of News Corp B exhibits notable fluctuations over the analyzed period from June 2021 to June 2025. As of June 30, 2021, the CCC stood at approximately 53.93 days, indicating the average period it takes for the company to convert its investments in inventory and other resource inputs into cash flows from sales. This cycle then experienced a reduction, reaching approximately 46.51 days by June 30, 2022, and further decreasing to about 44.58 days by June 30, 2023. These declines suggest improvements in the company's operational efficiency, potentially due to shorter inventory turnover periods or more efficient receivables collection processes.

However, in the subsequent years, the CCC experienced an upward trend. It increased significantly to approximately 53.26 days by June 30, 2024, implying that the company's cash conversion efficiency declined, possibly due to slower receivables collection, elongated inventory holding periods, or delays in payable processes. This upward shift indicates that the company took longer to convert its working capital investments into cash flows.

The cycle continued to lengthen, reaching approximately 68.01 days by June 30, 2025. This extension suggests a further deterioration in liquidity management, with the company potentially facing challenges in collection efficiency, inventory management, or supplier payment terms. The trend over this period reflects a pattern of initial improvement followed by a reversal, resulting in a prolonged cash conversion cycle in recent years.

Overall, the observed fluctuations in News Corp B's cash conversion cycle highlight variability in operational efficiency and working capital management. The recent elongation of the cycle signals increased operational or financial pressures that could impact liquidity and cash flow stability if the trend persists.