News Corp B (NWS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,684,000 | 16,544,000 | 16,681,000 | 16,475,000 | 16,921,000 | 17,034,000 | 16,891,000 | 16,387,000 | 17,221,000 | 17,419,000 | 16,520,000 | 16,418,000 | 16,771,000 | 15,397,000 | 15,094,000 | 14,400,000 | 14,261,000 | 14,428,000 | 16,282,000 | 16,233,000 |
| 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 |
| Financial leverage ratio | 2.05 | 2.05 | 2.04 | 2.09 | 2.10 | 2.11 | 2.08 | 2.08 | 2.09 | 2.07 | 1.97 | 2.00 | 2.04 | 1.88 | 1.86 | 1.89 | 1.88 | 1.84 | 1.82 | 1.86 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,684,000K ÷ $8,120,000K
= 2.05
The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations and investments. A higher financial leverage ratio indicates that the company relies more on debt financing, which can enhance returns in favorable conditions but also increase financial risk during economic downturns.
By analyzing the trend of News Corp B's financial leverage ratio over the past few quarters, we observe some fluctuations. The ratio has ranged between 1.82 and 2.11, peaking at 2.11 in September 2023. The fluctuations in the ratio suggest that News Corp B has been actively managing its capital structure and leveraging levels over the recent periods.
Despite the fluctuations, the financial leverage ratio has generally remained above 2.00, suggesting a moderate to high level of debt utilization in the company's capital structure. This level of leverage could indicate that News Corp B is comfortable with the associated risks and may be pursuing growth opportunities that require significant funding.
Investors and analysts closely monitor changes in the financial leverage ratio as it can impact the company's risk profile, cost of capital, and overall financial health. It would be beneficial to further investigate the specific drivers behind the changes in News Corp B's financial leverage ratio to gain a deeper understanding of its capital structure decisions and their implications for the company's performance and future prospects.
Peer comparison
Jun 30, 2024