News Corp A (NWSA)
Payables turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,195,000 | 5,789,000 | 5,838,000 | 5,812,000 | 5,512,000 |
| Payables | US$ in thousands | 335,000 | 314,000 | 440,000 | 411,000 | 321,000 |
| Payables turnover | 12.52 | 18.44 | 13.27 | 14.14 | 17.17 |
June 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,195,000K ÷ $335,000K
= 12.52
The payables turnover ratio for News Corp A exhibits notable fluctuations over the assessed period from June 30, 2021, to June 30, 2025. In 2021, the ratio stood at 17.17, indicating a relatively high frequency of payables being settled within the period, which suggests efficient management of accounts payable and a shorter average payment period to suppliers.
By 2022, the ratio decreased to 14.14, reflecting a slight lengthening in the average time taken to settle payables, possibly indicative of changes in payment policies, cash flow considerations, or supplier payment terms. The downward trend continued into 2023, with the ratio further declining to 13.27, illustrating a gradual extension of the accounts payable cycle during this period.
However, a noteworthy shift occurs in 2024, as the ratio rebounds sharply to 18.44, surpassing the previous year's figures and indicating a significant increase in the frequency of payments to suppliers. This increase could be associated with accelerated payments, improved liquidity, or strategic changes to supplier relationships.
In 2025, the ratio declines again to 12.52, representing a substantial reduction from 2024 and suggesting a period of extended payables relative to the purchases made or payments slowed to suppliers. This decline may imply deliberate delays in payments, weakened liquidity position, or adjustments in payment terms.
Overall, the payables turnover ratio displays considerable volatility over the analyzed period, with periods of both rapid turnover and extended payable cycles. These fluctuations may reflect strategic shifts in accounting policies, operational cash flow management, or responses to external market conditions. Understanding the context behind these changes requires further investigation into the company's broader financial strategies and liquidity position during these years.
Peer comparison
Jun 30, 2025