News Corp B (NWS)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.72% | 57.50% | 57.74% | 56.17% | 39.29% |
| Operating profit margin | -28.02% | -28.13% | -26.19% | -30.23% | -49.47% |
| Pretax margin | 4.54% | 2.96% | 6.50% | 4.18% | -13.85% |
| Net profit margin | 2.64% | 1.51% | 6.00% | 3.53% | -14.09% |
The profitability ratios of News Corp B show some fluctuations over the past five years. The gross profit margin has remained relatively stable, ranging from 39.29% in 2020 to 57.74% in 2022, indicating the company's ability to effectively manage its production costs and generate profits from its core business activities.
However, the operating profit margin has been more volatile, with negative margins in each of the past five years, indicating challenges in controlling operating expenses relative to revenue. The improvement in the operating profit margin from -49.47% in 2020 to -26.19% in 2022 shows some progress in cost management, but further improvements are still needed.
The pretax margin also shows variability, with a significant improvement from -13.85% in 2020 to 6.50% in 2022, suggesting better overall financial performance before accounting for taxes and other expenses.
The net profit margin, which reflects the final profitability after all expenses have been deducted, has also seen fluctuations but generally shows an upward trend over the years. The improvement from -14.09% in 2020 to 6.00% in 2022 is particularly noteworthy, indicating enhanced efficiency in managing costs and generating profits.
Overall, while there have been some positive trends in profitability ratios for News Corp B, there are still areas that require attention, especially in improving the operating profit margin to ensure sustainable profitability in the long term.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.94% | -16.42% | -15.79% | -16.87% | -31.25% |
| Return on assets (ROA) | 1.59% | 0.88% | 3.62% | 1.97% | -8.90% |
| Return on total capital | -25.75% | -25.25% | -24.73% | -26.95% | -50.84% |
| Return on equity (ROE) | 3.28% | 1.85% | 7.58% | 4.02% | -16.74% |
News Corp B's profitability ratios show mixed performance over the past five years. The Operating Return on Assets (Operating ROA) has been consistently negative, indicating that the company's core operations have not been generating positive returns relative to its assets. However, there was a slight improvement in 2024 compared to the prior years.
The Return on Assets (ROA) fluctuated over the period, with a significant decline in 2020 followed by a recovery in 2022, but a slight decrease in 2024. This ratio indicates the company's ability to generate profits from its total assets, and the recent figures show a positive trend.
The Return on Total Capital has also been negative throughout the years, signaling that the company's overall capital investments have not yielded favorable returns. The decreasing trend suggests that News Corp B may be struggling to efficiently utilize its total capital.
On the other hand, the Return on Equity (ROE) shows a similar fluctuating pattern to ROA, with an improvement in 2022 and a subsequent decline in 2024. ROE reflects the return generated for the shareholders' equity investment, and the recent figures indicate positive but modest returns for equity holders.
In conclusion, while there are signs of improvement in certain profitability ratios like ROA and ROE, News Corp B still faces challenges in generating returns from its operations and total capital. Continuous monitoring and strategic adjustments may be necessary to enhance overall profitability in the future.