News Corp A (NWSA)

The liquidity ratios of News Corp A have shown a mixed performance over the past five years.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating that News Corp A has had sufficient current assets to meet its short-term liabilities. However, there has been some fluctuation in the current ratio over the years, with a peak of 1.43 in 2024 and a low of 1.16 in 2022. Overall, the current ratio has shown a slightly improving trend, suggesting better short-term liquidity management.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. News Corp A's quick ratio has generally been above 1, indicating a favorable ability to cover short-term liabilities without relying on inventory. Similar to the current ratio, the quick ratio has varied over the years, with a high of 1.24 in 2021 and a low of 1.00 in 2022. The trend in the quick ratio has also shown a slight improvement over the years.

The cash ratio, which is the most stringent measure of liquidity, focuses solely on the company's cash and cash equivalents compared to its current liabilities. News Corp A's cash ratio has generally been below 1, indicating a lower level of liquidity when compared to the current and quick ratios. However, the cash ratio has shown an increasing trend over the years, with a peak of 0.71 in 2024 compared to a low of 0.58 in 2022.

Overall, the liquidity ratios of News Corp A suggest that the company has maintained a generally healthy liquidity position over the years, with improvements seen in some ratios. However, continued monitoring and management of liquidity are essential to ensure the company can meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle of News Corp A has fluctuated over the past five years. In the most recent period, as of June 30, 2024, the company's cash conversion cycle was 52.89 days, showing an increase compared to the previous year. This increase indicates that News Corp A takes longer to convert its investments in inventory and other resources into cash.

Looking back, the cash conversion cycle was lower in June 30, 2023, at 41.44 days, suggesting that the company managed its working capital more efficiently that year. However, in June 30, 2022, the cycle increased to 44.47 days, indicating a slight deterioration in the company's liquidity management compared to the prior year.

In June 30, 2021, the cash conversion cycle was 52.38 days, showing a significant increase from the previous year, which may have signaled challenges in managing cash flow and working capital during that period. Lastly, in June 30, 2020, the cycle was 48.54 days, indicating that the company was able to convert its resources into cash more efficiently compared to the following year.

Overall, the trend of News Corp A's cash conversion cycle suggests variability in the company's ability to manage its working capital effectively over the past five years, with some years showing improvements while others showing challenges in converting investments into cash.