News Corp B (NWS)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 40,000 | 40,000 | 58,000 | 62,000 | 67,000 | 71,000 | 77,000 | 96,000 | 100,000 | 109,000 | 109,000 | 104,000 | 99,000 | 89,000 | 76,000 | 67,000 | 53,000 | 44,000 | 41,000 | 37,000 |
| Interest coverage | 26.32 | 23.98 | 16.00 | 13.92 | 11.33 | 8.96 | 7.87 | 4.36 | 3.99 | 3.44 | 3.73 | 6.12 | 8.75 | 8.62 | 9.72 | 9.88 | 8.30 | 14.02 | -13.44 | -19.41 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,053,000K ÷ $40,000K
= 26.32
The interest coverage ratio for News Corp B exhibits notable variability over the analyzed period, reflecting fluctuations in its ability to meet interest expenses through earnings before interest and taxes (EBIT).
Initially, in September 2020 and December 2020, the ratio was markedly negative at -19.41 and -13.44, indicating substantial earnings deficiencies relative to interest obligations, suggestive of losses or extremely low profitability in that period. This negative trend underscores a challenging financial position with limited capacity to cover interest expenses from operating income.
Beginning in March 2021, the ratio turns positive at 14.02, signifying an improvement in earnings capacity to cover interest obligations. This positive trend continues with ratios of 8.30 in June 2021 and 9.88 in September 2021, maintaining a robust coverage level throughout late 2021, which indicates a stable financial footing during this timeframe.
Throughout 2022, the ratio remains positive but exhibits a gradual decline, recording 8.62 in March, 8.75 in June, and decreasing to 6.12 by September. This downward trend suggests a relative weakening in earnings capacity, although the company still maintains coverage above baseline levels.
In 2023, the ratio continues to decline, reaching lows of approximately 3.44 to 3.99 by March and September, respectively. These figures imply that while interest payments are still being covered, the margin of safety is narrowing, possibly reflecting pressures on earnings or increased interest burdens.
However, from December 2023 onwards, the interest coverage ratio improves substantially, climbing to 7.87 and further escalating to 8.96 in March 2024. The upward trajectory persists with ratios of 11.33 and 13.92 in June and September 2024, respectively. This trend indicates a significant strengthening in the company's earnings capacity to service interest obligations, possibly due to improved revenues, cost management, or other operational enhancements.
Looking ahead into 2025, projections show continued growth in the interest coverage ratio, with forecasted ratios of 23.98 in March and 26.32 in June. Such forecasts suggest a robust liquidity position, with the company expected to generate substantially more EBIT than required to cover interest expenses, thereby implying enhanced financial stability and potentially favorable creditworthiness.
Overall, the interest coverage ratio for News Corp B has transitioned from negative extreme values in late 2020 to consistently positive and improving levels in subsequent periods. The recent trend indicates a strong and strengthening ability to meet interest obligations, which could positively influence perceptions of financial health and credit risk.
Peer comparison
Jun 30, 2025