News Corp A (NWSA)

Short-term

Turnover ratios

The inventory turnover ratio for News Corp A has been consistently high over the five-year period, indicating efficient management of inventory levels. The company is able to convert its inventory into sales quickly, with a peak of 16.21 times in 2021.

The receivables turnover ratio indicates how many times a company collects its accounts receivable during a period. News Corp A's receivables turnover has shown some fluctuations but has remained relatively stable, reflecting its ability to efficiently collect payments from customers.

In terms of payables turnover, News Corp A has been able to manage its payables effectively, with a higher turnover indicating that the company is paying its suppliers more frequently. The payables turnover has decreased over the years, suggesting a longer payment cycle compared to the earlier years.

The working capital turnover ratio measures how well a company is utilizing its working capital to generate sales. News Corp A's working capital turnover has shown fluctuations over the years, with a significant increase in 2022 followed by a decrease in subsequent years.

Overall, News Corp A's activity ratios suggest efficient management of inventory levels, collection of receivables, payment of payables, and utilization of working capital for generating sales. However, there are some fluctuations in the ratios over the years, indicating the need for continued monitoring and analysis to ensure optimal operational efficiency.

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Average number of days

Days of inventory on hand (DOH) for News Corp A has shown a slight improvement over the past five years, with a decreasing trend from 27.03 days in 2023 to 24.75 days in 2024. This indicates that the company is managing its inventory more efficiently and holding less inventory on average in recent years.

Days of sales outstanding (DSO) have been somewhat fluctuating, with a peak in 2021 at 58.43 days and a decrease to 54.40 days in 2024. Although there has been some variability, the overall trend suggests that the company is collecting its accounts receivable in a reasonable timeframe.

The number of days of payables for News Corp A has shown a similar trend to inventory days, with an increasing trend from 23.43 days in 2020 to 26.26 days in 2024. This indicates that the company is taking longer to pay its suppliers, which could potentially signal a cash flow advantage as payables are being used more effectively as a source of financing.

Overall, looking at the activity ratios, News Corp A seems to be managing its inventory efficiently, collecting its receivables in a reasonable timeframe, and strategically managing its payables to its advantage over the past five years.

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Long-term

The long-term activity ratios of News Corp A, as indicated by the fixed asset turnover and total asset turnover ratios, have shown a positive trend over the past five years.

The fixed asset turnover ratio has been steadily increasing from 3.99 in June 2020 to 5.27 in June 2024, indicating that the company is generating more revenue per dollar invested in fixed assets. This suggests that News Corp A has been effectively utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio has also exhibited an upward trajectory, from 0.56 in June 2021 to 0.60 in June 2024. This indicates that the company is generating more revenue relative to its total assets, reflecting improved efficiency in asset utilization.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that News Corp A has been successful in managing its assets efficiently and maximizing its revenue generation capabilities over the past five years.