News Corp B (NWS)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.75 | 27.03 | 25.86 | 22.51 | 23.23 |
| Days of sales outstanding (DSO) | days | 54.40 | 52.65 | 52.79 | 58.43 | 48.75 |
| Number of days of payables | days | 26.26 | 38.25 | 34.18 | 28.56 | 23.43 |
| Cash conversion cycle | days | 52.89 | 41.44 | 44.47 | 52.38 | 48.54 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.75 + 54.40 – 26.26
= 52.89
The cash conversion cycle of News Corp B has shown fluctuations over the past five years. In the most recent year ending June 30, 2024, the cash conversion cycle increased to 52.89 days, indicating that it took the company approximately 53 days to convert its investments in inventory and other resources into cash.
Comparing this to the previous year, we see an increase from 41.44 days to 52.89 days, which suggests that the company took longer to convert its resources into cash in the latest reporting period.
Looking back further, the cash conversion cycle was relatively stable around the 44 to 52-day range in the years before 2023. This indicates that the company managed its cash conversion efficiency consistently during those years.
Overall, the varying cash conversion cycle figures for News Corp B suggest fluctuations in the company's ability to manage its working capital efficiently, potentially impacting its liquidity and overall financial performance. It would be essential for the company to closely monitor and improve its cash conversion cycle to ensure optimal utilization of resources and maintain financial health.
Peer comparison
Jun 30, 2024