News Corp A (NWSA)

The liquidity position of News Corp A over the period from September 2020 to June 2025 exhibits a generally positive trend, characterized by fluctuations within acceptable ranges for a media and publishing firm.

Current Ratio:
The current ratio, which assesses the company's ability to meet short-term obligations using current assets, shows a slight upward trajectory over the period. Beginning at approximately 1.25 in September 2020, the ratio experienced modest increases, reaching a low of 1.16 in June 2022, before gradually rising to 1.84 in June 2025. The ascending trend indicates an improvement in short-term liquidity and a more comfortable buffer to cover current liabilities.

Quick Ratio:
The quick ratio, which excludes inventory and other less liquid assets, remained relatively stable with minor fluctuations. Starting at around 1.01 in September 2020, it experienced some decrease during 2022, dipping close to 0.96 in June 2022, suggesting a slight decline in assets that can be immediately converted to cash. However, from 2023 onward, there has been a recovery, culminating in a ratio of approximately 1.52 in June 2025, reflecting improved liquidity in the more liquid asset base.

Cash Ratio:
The cash ratio, the most conservative liquidity measure reflecting the company's cash and cash equivalents relative to current liabilities, demonstrated variability. Beginning at 0.56 in September 2020, it fluctuated around the 0.54 to 0.69 range for most of 2021 and 2022, indicating a stable but conservative cache of cash reserves. Notably, between March 2024 and June 2025, the cash ratio rose significantly from approximately 0.64 to 0.92, implying a substantial increase in cash holdings relative to short-term obligations and enhancing immediate liquidity coverage.

Overall Analysis:
The data indicates that News Corp A has maintained steady liquidity levels over the analyzed period, with a consistent trend toward improved short-term financial stability. The rising current and quick ratios from 2023 onward, coupled with a substantial increase in the cash ratio in mid-2024 and mid-2025, suggest strengthening liquidity determinants, potentially driven by operational improvements, cash management strategies, or shifts in working capital. This consistent enhancement in liquidity metrics signifies a positive outlook regarding the company's ability to meet its short-term liabilities with available assets.

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Additional liquidity measure

The analysis of News Corp A's cash conversion cycle (CCC) over the specified period reveals notable fluctuations and a general upward trend from September 2020 through June 2025. Initially, the CCC was approximately 43.23 days as of September 30, 2020, indicating a relatively efficient cycle. However, the cycle increased to 54.13 days by December 31, 2020, reflecting a deterioration in working capital management.

Throughout 2021, the CCC exhibited variability, reaching a peak of 56.09 days in September 2021, before declining slightly to 53.87 days by the end of the year. In 2022, the cycle remained relatively high, with a maximum of 59.99 days on December 31, 2022, illustrating a period of extended cash conversion periods. A decrease was observed in mid-2022, with the CCC dropping to 46.51 days as of June 30, 2022, suggesting some operational improvements during that interval.

Moving into 2023, the CCC displayed increased volatility, reaching approximately 60.86 days in September 2023, its highest point within the analyzed timeframe. Subsequently, the cycle slightly declined to 58.00 days in December 2024 but then increased again during the first half of 2025, peaking at 64.75 days on June 30, 2025, which represents the longest duration in the observed period.

Overall, the trend indicates a pattern of cyclical expansion and contraction in the cash conversion cycle, with a tendency toward lengthening in recent years. The increases suggest potential challenges in managing inventory, receivables, or payables efficiently, leading to a longer period to convert investments into cash. Conversely, periods of decline denote some periods of improved working capital management. The fluctuations highlight the dynamic nature of operational efficiency and liquidity management within the company over the analyzed timeframe.