News Corp B (NWS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -2,826,000 | -2,769,000 | -2,730,000 | -2,781,000 | -2,779,000 | -2,935,000 | -2,945,000 | -2,800,000 | -2,720,000 | -2,861,000 | -2,878,000 | -2,833,000 | -2,829,000 | -450,000 | -1,480,000 | -1,678,000 | -2,077,000 | -950,000 | 71,000 | 64,000 |
| Long-term debt | US$ in thousands | 2,855,000 | 2,844,000 | 2,984,000 | 2,909,000 | 2,940,000 | 2,960,000 | 2,998,000 | 2,977,000 | 2,776,000 | 2,496,000 | 1,968,000 | 1,964,000 | 2,285,000 | 1,000,000 | 1,044,000 | 1,206,000 | 1,183,000 | 1,115,000 | 1,201,000 | 707,000 |
| Total stockholders’ equity | US$ in thousands | 8,120,000 | 8,051,000 | 8,182,000 | 7,892,000 | 8,064,000 | 8,077,000 | 8,115,000 | 7,872,000 | 8,222,000 | 8,425,000 | 8,383,000 | 8,210,000 | 8,211,000 | 8,188,000 | 8,131,000 | 7,639,000 | 7,582,000 | 7,832,000 | 8,958,000 | 8,714,000 |
| Return on total capital | -25.75% | -25.42% | -24.45% | -25.75% | -25.25% | -26.59% | -26.50% | -25.81% | -24.73% | -26.20% | -27.80% | -27.85% | -26.95% | -4.90% | -16.13% | -18.97% | -23.70% | -10.62% | 0.70% | 0.68% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-2,826,000K ÷ ($2,855,000K + $8,120,000K)
= -25.75%
News Corp B has experienced a consistently negative trend in its return on total capital over the past few quarters. The return on total capital was particularly low in the most recent quarter at -25.75% compared to -25.42% in the previous quarter and -24.45% in the quarter before that. This negative trend indicates that the company is not efficiently utilizing its total capital to generate profits.
The company's return on total capital has been consistently below zero, with only a slight improvement seen in some quarters. This indicates that the company may be facing challenges in generating sufficient returns relative to the amount of capital invested in its operations.
Overall, the consistently negative return on total capital suggests that News Corp B may need to reassess its capital allocation strategies, operational efficiency, and overall business performance to improve its financial performance and generate better returns for its investors.
Peer comparison
Jun 30, 2024