News Corp B (NWS)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 10,000 | 85,000 | 100,000 | 99,000 | 53,000 |
| Interest coverage | 93.30 | 7.42 | 4.30 | 10.53 | 11.60 |
June 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $933,000K ÷ $10,000K
= 93.30
The interest coverage ratio of News Corp B has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio was 11.60, indicating a strong capacity to meet interest obligations from earnings before interest and taxes (EBIT). This high coverage persisted into June 30, 2022, with a slight decline to 10.53, still reflecting robust earnings relative to interest expenses.
However, a significant decline is observed by June 30, 2023, where the ratio drops sharply to 4.30. This suggests a reduced ability to cover interest expenses, which could be indicative of decreased earnings or increased interest costs, warranting further investigation into underlying financial performance and risk levels.
By June 30, 2024, the ratio improves to 7.42, signifying some recovery in earnings capacity relative to interest obligations, but it remains below the peak levels observed in 2021 and 2022. The most dramatic change occurs by June 30, 2025, where the ratio surges to 93.30. This extraordinary increase indicates an extremely comfortable position for covering interest expenses, likely driven by significant earnings growth or restructuring that substantially reduces interest burden.
Overall, the interest coverage ratio demonstrates a period of stability followed by a notable weakening in 2023, and subsequently a dramatic improvement by 2025. Such volatility underscores the importance of analyzing underlying earnings and debt structure changes to fully understand the company's financial health and risk profile over this timeframe.
Peer comparison
Jun 30, 2025