News Corp A (NWSA)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.75 | 27.03 | 25.86 | 22.51 | 23.23 |
| Days of sales outstanding (DSO) | days | 54.40 | 52.65 | 52.79 | 58.43 | 48.75 |
| Number of days of payables | days | 26.26 | 38.25 | 34.18 | 28.56 | 23.43 |
| Cash conversion cycle | days | 52.89 | 41.44 | 44.47 | 52.38 | 48.54 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 24.75 + 54.40 – 26.26
= 52.89
The cash conversion cycle for News Corp A has shown fluctuations over the past five years. As of June 30, 2024, the company's cash conversion cycle is 52.89 days, indicating that it takes approximately 52.89 days for News Corp A to convert its investments in raw materials into cash from sales. This represents an increase from the previous year's figure of 41.44 days.
The trend in the cash conversion cycle for News Corp A demonstrates variability, with fluctuations observed from year to year. Comparing the data over the five-year period, there has been a mix of longer and shorter cash conversion cycles, suggesting potential changes in the company's operating efficiency and effectiveness in managing its working capital.
The increase in the cash conversion cycle from 2023 to 2024 may indicate extended payment cycles from customers, delays in collecting receivables, or inefficiencies in inventory management. It is essential for News Corp A to closely monitor and manage its cash conversion cycle to optimize its working capital and liquidity position, as a shorter cycle generally signifies better efficiency in operations and working capital management.
Peer comparison
Jun 30, 2024