News Corp B (NWS)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,826,000 | -2,779,000 | -2,720,000 | -2,829,000 | -4,456,000 |
| Long-term debt | US$ in thousands | 2,855,000 | 2,940,000 | 2,776,000 | 2,285,000 | 1,183,000 |
| Total stockholders’ equity | US$ in thousands | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 | 7,582,000 |
| Return on total capital | -25.75% | -25.25% | -24.73% | -26.95% | -50.84% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,826,000K ÷ ($2,855,000K + $8,120,000K)
= -25.75%
The return on total capital for News Corp B has been negative over the past five years. The trend shows a fluctuating performance, with the ratio improving slightly in 2023 and 2024 compared to the previous years. However, the company has consistently failed to generate a positive return on total capital, with the most notable decline occurring in 2020 when the ratio reached a significantly low value of -50.84%.
The negative return on total capital indicates that the company's capital investment is not yielding profitable returns. It suggests that News Corp B is not effectively utilizing its capital resources to generate income or that its operating performance is facing challenges.
It is crucial for the company to evaluate and address the factors contributing to the consistently negative return on total capital to improve financial performance and ensure sustainable growth in the future.
Peer comparison
Jun 30, 2024