News Corp B (NWS)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 933,000 | 631,000 | 430,000 | 1,042,000 | 615,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,774,000 | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 |
| Return on total capital | 10.63% | 7.77% | 5.33% | 12.67% | 7.49% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $933,000K ÷ ($—K + $8,774,000K)
= 10.63%
The return on total capital for News Corp B exhibits notable fluctuations over the observed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the return stood at 7.49%, indicating a moderate level of efficiency in generating profits relative to the company's overall capital base at that time. The subsequent year, June 30, 2022, experienced a significant increase to 12.67%, reflecting an improved ability to leverage the company's capital to generate earnings, possibly due to enhanced operational performance or strategic initiatives.
However, the return declined sharply in the following year, June 30, 2023, to 5.33%, suggesting a downturn in profit generation efficiency or potential increases in capital base without proportionate profit growth. Despite this decline, the return improves in the subsequent period ending June 30, 2024, rising again to 7.77%, indicating a recovery in the company's capacity to generate returns from its total capital.
Looking forward, the forecasted figures for June 30, 2025, project a further increase to 10.63%. This upward trend suggests an optimistic outlook on the company's operational efficiency and profitability, possibly driven by strategic enhancements, cost management, or revenue growth initiatives.
In summary, the company's return on total capital has experienced variability over the analyzed periods, with short-term fluctuations but an overall trending improvement toward the forecasted figure in mid-2025. This pattern indicates a recovery and potential strengthening of the company's ability to efficiently utilize its total capital base in generating earnings.
Peer comparison
Jun 30, 2025