News Corp A (NWSA)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,960,000 | 1,833,000 | 1,822,000 | 2,236,000 | 1,517,000 |
| Short-term investments | US$ in thousands | 214,000 | 235,000 | 212,000 | 280,000 | 177,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 | 2,682,000 |
| Cash ratio | 0.71 | 0.65 | 0.58 | 0.78 | 0.63 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,960,000K
+ $214,000K)
÷ $3,055,000K
= 0.71
The cash ratio of News Corp A has fluctuated over the past five years, ranging from 0.58 in June 30, 2022 to a high of 0.78 in June 30, 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing. In this case, the company's cash ratio has generally been above 0.6, indicating a reasonable level of liquidity. However, the downward trend in the cash ratio from 2021 to 2023 may suggest a potential decrease in short-term liquidity during those periods. It would be important to further analyze the company's cash management and potential reasons for the fluctuations in the cash ratio to gain a deeper understanding of its financial health.
Peer comparison
Jun 30, 2024