News Corp A (NWSA)
Working capital turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,085,000 | 9,941,000 | 9,965,000 | 9,900,000 | 9,879,000 | 10,120,000 | 10,165,000 | 10,361,000 | 10,385,000 | 10,203,000 | 10,046,000 | 9,743,000 | 9,358,000 | 8,789,000 | 8,720,000 | 8,785,000 | 9,008,000 | 9,551,000 | 9,742,000 | 9,890,000 |
| Total current assets | US$ in thousands | 4,372,000 | 4,128,000 | 4,003,000 | 3,969,000 | 4,053,000 | 4,032,000 | 3,763,000 | 3,754,000 | 4,093,000 | 4,162,000 | 4,599,000 | 4,372,000 | 4,456,000 | 3,943,000 | 3,596,000 | 3,435,000 | 3,461,000 | 3,741,000 | 3,718,000 | 3,799,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,042,000 | 2,784,000 | 3,037,000 | 3,165,000 | 3,204,000 | 2,939,000 | 3,013,000 | 3,519,000 | 3,527,000 | 3,233,000 | 3,272,000 | 3,234,000 | 3,169,000 | 2,861,000 | 2,738,000 | 2,682,000 | 2,689,000 | 2,727,000 | 3,492,000 |
| Working capital turnover | 7.66 | 9.15 | 8.17 | 10.62 | 11.12 | 12.22 | 12.34 | 13.98 | 18.09 | 16.07 | 7.35 | 8.86 | 7.66 | 11.36 | 11.86 | 12.60 | 11.56 | 9.08 | 9.83 | 32.21 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations and generate revenue.
Analyzing the working capital turnover for News Corp A over the past quarters reveals fluctuations in the efficiency of its working capital management. The ratio ranged from a low of 7.35 in the first quarter of 2022 to a high of 18.09 in the third quarter of 2022. These fluctuations suggest varying degrees of effectiveness in utilizing working capital to drive sales during the different periods.
Overall, the trend in the working capital turnover ratio for News Corp A shows an improving efficiency in recent quarters, with the ratio steadily increasing from 7.35 in the first quarter of 2022 to 18.09 in the second quarter of 2022. This improvement indicates that the company has been able to enhance its working capital management practices, leading to a more effective deployment of resources to support its revenue generation activities.
It is important for News Corp A to continue monitoring and improving its working capital turnover ratio to ensure optimal utilization of its working capital and maintain a healthy balance between liquidity and operational efficiency.
Peer comparison
Jun 30, 2024