News Corp B (NWS)
Cash conversion cycle
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.75 | 28.30 | 25.64 | 32.73 | 27.03 | 30.02 | 27.35 | 30.88 | 25.86 | 25.41 | 20.66 | 26.46 | 22.51 | 28.56 | 17.99 | 17.75 | 28.06 | 24.93 | 30.40 | 34.21 |
| Days of sales outstanding (DSO) | days | 54.40 | 52.80 | 55.53 | 57.48 | 52.65 | 55.54 | 58.74 | 51.89 | 52.79 | 54.81 | 60.49 | 56.16 | 58.43 | 55.44 | 60.44 | 51.52 | 48.75 | 47.27 | 58.82 | 56.84 |
| Number of days of payables | days | 26.26 | 23.00 | 20.98 | 28.06 | 38.25 | 34.32 | 25.68 | 28.81 | 34.18 | 26.15 | 29.24 | 26.55 | 28.56 | 39.01 | 25.79 | 28.16 | 28.31 | 23.49 | 31.84 | 34.55 |
| Cash conversion cycle | days | 52.89 | 58.10 | 60.19 | 62.15 | 41.44 | 51.24 | 60.41 | 53.96 | 44.47 | 54.06 | 51.91 | 56.07 | 52.38 | 44.99 | 52.64 | 41.11 | 48.50 | 48.72 | 57.38 | 56.49 |
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 measures how long it takes for a company to convert its investments in inventory into cash flows from sales. It is a critical indicator of a company's operational efficiency and liquidity management.
Looking at the data provided for News Corp B over multiple quarters, we observe fluctuations in the cash conversion cycle. The trend shows that the company's efficiency in managing its working capital has varied over time.
In the most recent quarter, the cash conversion cycle was 52.89 days, indicating that it took approximately 53 days for News Corp B to convert its investments in inventory into cash after making sales. This suggests a moderate level of efficiency in managing its working capital compared to previous quarters.
The highest cash conversion cycle was seen in the quarter ending December 31, 2023, at 60.19 days, while the lowest was in the quarter ending March 31, 2020, at 41.11 days. These variations may be attributed to factors such as fluctuations in sales, inventory management practices, payment terms with suppliers, or collection efficiency from customers.
Overall, the analysis of News Corp B's cash conversion cycle reveals fluctuations in operational efficiency and working capital management. It is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure optimal liquidity and profitability.
Peer comparison
Jun 30, 2024