News Corp A (NWSA)
Working capital turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,452,000 | 10,085,000 | 9,879,000 | 10,385,000 | 9,358,000 |
| Total current assets | US$ in thousands | 4,811,000 | 4,372,000 | 4,053,000 | 4,093,000 | 4,456,000 |
| Total current liabilities | US$ in thousands | 2,608,000 | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 |
| Working capital turnover | 3.84 | 7.66 | 11.12 | 18.09 | 7.66 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,452,000K ÷ ($4,811,000K – $2,608,000K)
= 3.84
The working capital turnover ratio of News Corp A has exhibited notable fluctuations over the analyzed period. As of June 30, 2021, the ratio stood at 7.66, indicating a moderate efficiency in utilizing working capital to generate sales. The subsequent year, June 30, 2022, experienced a substantial increase to 18.09, suggesting a significant improvement in the company's ability to generate sales from its working capital assets. This peak may reflect enhanced operational efficiency or a change in working capital management practices.
However, by June 30, 2023, the ratio declined to 11.12, indicating a reduction in efficiency compared to the previous year, though still considerably higher than the 2021 level. This decline could stem from an increase in working capital needs or decreased sales efficiency, warranting further investigation into operational changes during that period.
The ratio reverted to its initial level of 7.66 by June 30, 2024, pointing to a potential return to previous working capital management practices or operational conditions similar to those observed in 2021. Finally, in June 2025, the ratio further decreased to 3.84, indicating a significant decline in working capital efficiency. This downward trend suggests that more working capital is now being utilized for lesser sales, which could imply overinvestment in working capital, operational inefficiencies, or a strategic shift affecting sales generation relative to working capital employed.
In summary, the working capital turnover ratio for News Corp A shows considerable variability, with a peak in 2022 and subsequent declines thereafter. The most recent ratio indicates reduced efficiency in converting working capital into sales, highlighting potential areas for operational review and efficiency improvement strategies.
Peer comparison
Jun 30, 2025