News Corp B (NWS)
Debt-to-capital ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.26 | 0.27 | 0.25 | 0.22 | 0.13 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,855,000K ÷ ($2,855,000K + $8,120,000K)
= 0.26
The debt-to-capital ratio of News Corp B has shown a fluctuating trend over the past five years, ranging from 0.13 to 0.27.
In Jun 2020, the ratio was at its lowest point at 0.13, indicating that the company had relatively lower financial leverage with a significant portion of its capital coming from equity rather than debt.
Subsequently, the ratio increased in the following years, reaching its peak in Jun 2023 at 0.27. This suggests that News Corp B increased its reliance on debt financing compared to equity during that period.
However, in the most recent period ending Jun 2024, the debt-to-capital ratio decreased slightly to 0.26. While still relatively higher than the earlier years, this reduction may signal a strategic shift towards optimizing the capital structure and managing debt levels effectively.
Overall, News Corp B's debt-to-capital ratio has displayed variability, reflecting changes in the company's financing decisions and capital structure management over the years. It is essential to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Jun 30, 2024