News Corp A (NWSA)
Cash conversion cycle
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.45 | 18.66 | 19.44 | 19.53 | 16.75 |
| Days of sales outstanding (DSO) | days | 68.71 | 54.40 | 52.65 | 52.79 | 58.43 |
| Number of days of payables | days | 29.15 | 19.80 | 27.51 | 25.81 | 21.26 |
| Cash conversion cycle | days | 68.01 | 53.26 | 44.58 | 46.51 | 53.93 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 28.45 + 68.71 – 29.15
= 68.01
The cash conversion cycle (CCC) of News Corp A demonstrates notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the CCC was approximately 53.93 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. Over the subsequent year, this metric declined to approximately 46.51 days as of June 30, 2022, suggesting an improvement in operational efficiency, likely due to reduced days in inventory or a shorter receivables collection period.
The trend continued into June 30, 2023, with the CCC further decreasing to about 44.58 days, reinforcing a pattern of enhanced cash management and shorter cycle durations. However, this positive trend reversed in the following years. By June 30, 2024, the CCC increased significantly to approximately 53.26 days, surpassing the 2021 level, indicating a slowdown in cash conversion efficiency and potentially longer periods for receivables, inventory turnover, or payables.
The downward trend did not recover in the subsequent year. As of June 30, 2025, the CCC rose sharply to approximately 68.01 days, marking a substantial increase of over 21 days compared to 2024. This indicates a considerable elongation in the company's cash conversion process, possibly due to increased receivables collection periods, higher inventory holding times, or extended payables periods, which together have contributed to a lengthening of the overall cycle.
In summary, the cash conversion cycle of News Corp A showcased an initial improvement from 2021 through 2023, followed by a marked deterioration starting in 2024 and into 2025. This pattern suggests periods of operational efficiency gains followed by challenges in cash management and working capital cycle efficiency in recent years.
Peer comparison
Jun 30, 2025