News Corp B (NWS)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,053,000 | 959,000 | 928,000 | 863,000 | 759,000 | 636,000 | 606,000 | 419,000 | 399,000 | 375,000 | 407,000 | 636,000 | 866,000 | 767,000 | 739,000 | 662,000 | 440,000 | 617,000 | -551,000 | -718,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,774,000 | 8,203,000 | 8,149,000 | 8,253,000 | 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 |
| Return on total capital | 12.00% | 11.69% | 11.39% | 10.46% | 9.35% | 7.90% | 7.41% | 5.31% | 4.95% | 4.64% | 5.02% | 8.08% | 10.53% | 9.10% | 8.82% | 8.06% | 5.36% | 7.54% | -6.78% | -9.40% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,053,000K ÷ ($—K + $8,774,000K)
= 12.00%
The analysis of News Corp B's return on total capital over the specified period reveals a trajectory marked by initial negative performance, subsequent recovery, and ongoing improvement. As of September 30, 2020, the return was significantly negative at -9.40%, indicating that the company was not generating sufficient earnings to cover its total capital during that quarter. This negative figure persisted through December 31, 2020, when it improved slightly to -6.78%, suggesting some stabilization but still underperformance.
Beginning in the first quarter of 2021, a notable positive shift occurred; the return on total capital surged to 7.54% by March 31, 2021, signaling a transition to profitability and more efficient utilization of total capital. This upward momentum continued through 2021 and into 2022, with the return reaching 8.82% on December 31, 2021, and further increasing to 9.10% by March 31, 2022. The trend persisted into the second quarter of 2022, with an even higher return of 10.53%.
Throughout 2022, the return on total capital showed signs of fluctuation, declining slightly to 8.08% by September 30, 2022, and then decreasing further to 5.02% at year-end. In the first quarter of 2023, the ratio decreased marginally to 4.64%, remaining relatively low but positive. It experienced a modest recovery during the subsequent quarters, reaching 4.95% on June 30, 2023, and slightly improving to 5.31% on September 30, 2023.
Forecasted data indicate a positive and consistent upward trend in the company's return on total capital, with projections reaching 7.41% by December 31, 2023, and continuing to rise to 7.90% in the first quarter of 2024. The trend of improvement is sustained into 2024 and 2025, with estimates of 9.35% on June 30, 2024, and 10.46% on September 30, 2024. By the end of the next year, the return is projected to be 11.39% on December 31, 2024, increasing further to 11.69% on March 31, 2025, and reaching 12.00% by June 30, 2025.
Overall, the data depicts a company that experienced substantial initial challenges, characterized by negative returns, followed by a period of recovery and sustained positive returns. The forecasted figures suggest an optimistic outlook, with consistent growth in the return on total capital anticipated through 2025, indicative of improved operational efficiency and profitability over time.
Peer comparison
Jun 30, 2025