News Corp A (NWSA)

Short-term

Turnover ratios

The activity ratios for News Corp A over the period from June 30, 2021, to June 30, 2025, reveal notable trends and fluctuations across inventory turnover, receivables turnover, payables turnover, and working capital turnover.

Inventory Turnover:
The inventory turnover ratio indicates how efficiently the company manages its inventory levels to generate sales. The ratio decreased from 21.79 times in 2021 to 18.69 in 2022, and slightly increased to 18.77 in 2023. A further rise to 19.56 occurred in 2024, reflecting a marginal improvement in inventory management efficiency. However, a significant decline to 12.83 in 2025 suggests a reduction in inventory turnover, potentially indicating increased inventory holdings relative to sales or challenges in managing inventory effectively during that period.

Receivables Turnover:
This ratio measures how effectively accounts receivable are collected. The ratio improved from 6.25 times in 2021 to 6.91 in 2022 and remained steady at 6.93 in 2023. A slight decrease to 6.71 in 2024 was observed, followed by a notable decline to 5.31 in 2025. The decrease in 2024 and further in 2025 indicates a slowdown in the collection process, possibly leading to longer receivable periods and reduced cash flow efficiency.

Payables Turnover:
The payables turnover ratio, indicating how quickly the company pays its suppliers, showed a decreasing trend from 17.17 times in 2021 to 14.14 in 2022 and further to 13.27 in 2023. An increase to 18.44 in 2024 suggests a period of faster payments to suppliers, but this was followed by a decline to 12.52 in 2025, reflecting a slowdown in payment frequency. The variability may relate to changes in supplier negotiation terms or working capital strategies.

Working Capital Turnover:
This ratio demonstrates how effectively the company utilizes its working capital to generate sales. The ratio increased significantly from 7.66 in 2021 to 18.09 in 2022, indicating improved efficiency. It then declined to 11.12 in 2023, reverted to 7.66 in 2024, and further decreased to 3.84 in 2025. The general downward trend suggests diminishing efficiency in converting working capital into sales over the period, with a substantial reduction evident in the 2025 figure.

Summary:
Overall, the activity ratios exhibit a pattern of initial improvement or stability from 2021 through 2023, followed by a marked decline in 2024 and more pronounced deterioration in 2025. The reductions in inventory turnover, receivables turnover, and working capital turnover indicate potential challenges in inventory management, collections, and overall operational efficiency. These trends may point to changing operational conditions, strategic shifts, or external factors affecting the company’s asset management effectiveness closer to 2025.

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Average number of days

The activity ratios of News Corp A over the period from June 2021 to June 2025 provide insights into the company's operational efficiency and working capital management.

Days of Inventory on Hand (DOH):
The DOH increased from 16.75 days in June 2021 to a peak of 19.53 days in June 2022. This suggests that inventory held by the company took longer to sell in that period. Following this peak, the DOH slightly declined to approximately 19.44 days in June 2023 and further decreased to 18.66 days in June 2024. However, a notable increase occurred in June 2025, with DOH rising to 28.45 days, indicating the company is holding inventory for a substantially longer period.

Days of Sales Outstanding (DSO):
The DSO decreased from 58.43 days in June 2021 to 52.79 days in June 2022, and stabilized around the low 52 days in June 2023 and June 2024. This pattern indicates an improvement in receivables collection efficiency during this period. Conversely, in June 2025, the DSO increased significantly to 68.71 days, implying extended credit terms or delayed collections from customers.

Number of Days of Payables:
The days payable period increased from 21.26 days in June 2021 to 27.51 days in June 2023. This indicates a tendency to delay payments to suppliers over this period. In June 2024, the payable days reduced to 19.80 days, but then increased again to 29.15 days in June 2025, which suggests variability in payment practices, possibly reflecting changes in negotiating payment terms or cash management strategies.

Overall, these activity ratios demonstrate a trend towards increased inventory holding and longer receivables collection periods in 2025, coupled with fluctuating supplier payment durations. The extended DOH and DSO in 2025 could impact liquidity and operational efficiency if not managed carefully, whereas earlier years reflected relatively more efficient working capital cycles.

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Long-term

The long-term activity ratios for News Corp A, as reflected in the provided data, indicate a trend of improving operational efficiency over the analyzed period, with some stabilization observed in subsequent years.

Fixed Asset Turnover Ratio:
- This ratio measures the efficiency with which the company's fixed assets generate revenue.
- From June 30, 2021, to June 30, 2023, there was a noticeable increase in the ratio, rising from 2.83 to 3.97. This upward trend suggests an enhancement in the utilization of fixed assets to produce sales, possibly due to better asset management, investments in more productive assets, or operational improvements.
- The absence of data for June 30, 2024, and June 30, 2025, limits the assessment of whether this positive trend continued. However, prior to this gap, the significant increase underscores a period of increased asset efficiency.

Total Asset Turnover Ratio:
- This ratio indicates the overall efficiency of the company's use of total assets to generate sales.
- The ratio increased slightly from 0.56 on June 30, 2021, to 0.60 on June 30, 2022, reflecting marginal improvement in asset utilization.
- The ratio then experienced a slight decline to 0.58 on June 30, 2023, followed by a stable expectation around 0.60 in 2024 and a minor decrease to 0.55 forecasted for 2025.
- These fluctuations suggest a relatively stable overall efficiency in asset utilization, with minor variations that may be attributed to operational or strategic factors impacting asset deployment.

Overall Analysis:
The company's fixed asset turnover ratio demonstrates a significant positive trajectory through 2021 to 2023, indicating successful efforts in leveraging fixed assets more efficiently to generate revenue. Conversely, the total asset turnover ratio remains relatively stable with slight fluctuations, reflecting consistent management of overall asset utilization. The stabilization in the latter years suggests a maturation of operational efficiency levels, with the company potentially reaching an optimal or steady state in asset utilization.

In summary, News Corp A has shown noteworthy improvement in fixed asset efficiency during the observed period, while overall asset utilization has remained relatively stable with minor variations, highlighting a generally steady long-term operational activity pattern.