News Corp A (NWSA)
Working capital turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,085,000 | 9,879,000 | 10,385,000 | 9,358,000 | 9,008,000 |
| Total current assets | US$ in thousands | 4,372,000 | 4,053,000 | 4,093,000 | 4,456,000 | 3,461,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 | 2,682,000 |
| Working capital turnover | 7.66 | 11.12 | 18.09 | 7.66 | 11.56 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,085,000K ÷ ($4,372,000K – $3,055,000K)
= 7.66
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio typically indicates better efficiency in managing working capital.
The working capital turnover for News Corp A has fluctuated over the past five years, as follows:
- In June 2020, the ratio was 11.56, indicating that the company generated $11.56 in revenue for every $1 of working capital invested.
- In June 2021, the ratio dropped to 7.66, suggesting a decrease in the efficiency of working capital utilization.
- However, in June 2022, there was a significant improvement as the ratio surged to 18.09, reflecting a substantial increase in revenue generated per unit of working capital.
- This was followed by a decrease in June 2023 to 11.12, and then the ratio dropped again to 7.66 in June 2024.
Overall, the company's working capital turnover ratio has shown varying levels of efficiency in utilizing its working capital over the past five years. It is essential for News Corp A to consistently monitor and optimize its working capital management to enhance operational efficiency and financial performance.
Peer comparison
Jun 30, 2024