News Corp A (NWSA)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.75 | 28.30 | 25.64 | 32.73 | 27.03 | 30.02 | 27.35 | 30.88 | 25.86 | 25.41 | 20.66 | 26.46 | 22.51 | 28.56 | 17.99 | 17.75 | 28.06 | 24.93 | 30.40 | 34.21 |
| Days of sales outstanding (DSO) | days | 54.40 | 52.80 | 55.53 | 57.48 | 52.65 | 55.54 | 58.74 | 51.89 | 52.79 | 54.81 | 60.49 | 56.16 | 58.43 | 55.44 | 60.44 | 51.52 | 48.75 | 47.27 | 58.82 | 56.84 |
| Number of days of payables | days | 26.26 | 23.00 | 20.98 | 28.06 | 38.25 | 34.32 | 25.68 | 28.81 | 34.18 | 26.15 | 29.24 | 26.55 | 28.56 | 39.01 | 25.79 | 28.16 | 28.31 | 23.49 | 31.84 | 34.55 |
| Cash conversion cycle | days | 52.89 | 58.10 | 60.19 | 62.15 | 41.44 | 51.24 | 60.41 | 53.96 | 44.47 | 54.06 | 51.91 | 56.07 | 52.38 | 44.99 | 52.64 | 41.11 | 48.50 | 48.72 | 57.38 | 56.49 |
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 fluctuated over the past several quarters, indicating changes in the efficiency of its working capital management.
The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales to customers. A shorter cycle is generally favorable as it implies quicker turnover of resources and cash flow generation.
In the most recent quarter, ending on June 30, 2024, the cash conversion cycle was 52.89 days, showing an improvement from the previous quarter's 58.10 days. This decrease suggests that News Corp A was able to streamline its operations and convert its resources into cash more efficiently during this period.
Looking further back, the cycle was at its lowest at 41.11 days on September 30, 2020, indicating a peak efficiency in working capital management and cash conversion. However, there were periods, such as on December 31, 2023, where the cycle extended to 60.19 days, indicating potential inefficiencies in managing working capital.
Overall, News Corp A should aim to consistently monitor and optimize its cash conversion cycle to ensure effective management of working capital, improve cash flow generation, and enhance overall financial performance.
Peer comparison
Jun 30, 2024