News Corp B (NWS)

The liquidity ratios of News Corp B from September 2020 through June 2025 exhibit a generally positive trend, indicating an overall enhancement in the company's short-term liquidity position over this period.

Current Ratio:
The current ratio remained relatively stable around 1.25 to 1.44 across the period, reflecting that the company's current assets consistently exceeded its current liabilities, though the ratio experienced fluctuations. Notably, there was a tightening from 1.42 at the end of December 2021 to a low of 1.16 in March 2022, followed by a gradual recovery reaching 1.73 by December 2024. The upward trend resumed into 2025, reaching 1.84, suggesting strengthening short-term liquidity and the ability to cover current obligations comfortably.

Quick Ratio:
The quick ratio, which excludes inventories and other less liquid current assets, fluctuated between approximately 0.89 and 1.52 over the analyzed period. It maintained a stable proximity to 1 for most of 2020 and 2021, indicating sufficient immediate liquidity. The ratio dipped below 1 at certain points, notably around March 2022 and the later part of 2024, reflecting periods where liquid assets (excluding inventories) were less than current liabilities. Nevertheless, there was a notable peak at 1.52 in June 2025, signifying a significant enhancement in liquidity, possibly driven by improved cash and receivables management.

Cash Ratio:
The cash ratio, indicating the proportion of cash and cash equivalents relative to current liabilities, generally hovered below 0.7 throughout the period, with some fluctuations. The ratio peaked at 0.92 in June 2025, a substantial increase compared to prior levels, implying a substantial accumulation of cash and equivalent assets relative to short-term obligations at that point. This progression indicates a strengthening of the company's immediate liquidity buffer toward the latest periods.

Summary:
Overall, News Corp B has maintained a stable core liquidity position, with the current ratio consistently above 1, implying that the company is generally capable of meeting its short-term liabilities with its current assets. The fluctuations in the quick and cash ratios reflect periodic tightening in immediate liquidity but also demonstrate a positive trend toward increased liquidity buffers in recent periods, as evidenced by the rising ratios in 2024 and 2025. The enhancements in these ratios suggest improved liquidity management and a more robust short-term financial position in the latter part of the period analyzed.

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Additional liquidity measure

The cash conversion cycle (CCC) for News Corp B demonstrates notable fluctuations over the analyzed period from September 2020 through June 2025. Starting at approximately 43.23 days in September 2020, the cycle exhibits an increasing trend, reaching its peak at around 67.10 days in September 2024. This upward trend indicates a lengthening in the time taken to convert investments in inventory and receivables into cash, reflecting potential challenges in receivables collection or inventory management, or delays in payment cycles.

During the initial periods, the CCC was relatively shorter, fluctuating between 43 and 56 days, which suggests a more efficient cash conversion process. However, starting from late 2021, a gradual increase is observed, culminating in the high points noted in late 2024. This prolonged cycle implies that the company is taking longer to realize cash from its operational activities, which could impact liquidity and working capital management.

Towards the most recent data, the CCC displays a slight decline from the peak in September 2024 to approximately 58 days in December 2024 and further down to about 51.97 days in March 2025. Nonetheless, it remains higher compared to the earlier years, indicating persistent inefficiencies or strategic timing in receivables and inventory turnover.

Overall, the trend suggests a period of operational elongation in cash realization periods, with a recent tendency towards partial recovery but still reflecting a longer-than-expected conversion cycle relative to earlier benchmarks. This pattern warrants ongoing attention to collections, inventory management, and payment terms to enhance cash flow efficiency.