News Corp A (NWSA)

Liquidity ratios

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
Current ratio 1.43 1.36 1.44 1.31 1.28 1.26 1.28 1.25 1.16 1.18 1.42 1.34 1.38 1.24 1.26 1.25 1.29 1.39 1.36 1.09
Quick ratio 1.20 1.19 1.25 1.09 1.10 1.07 1.09 1.04 1.00 1.04 1.28 1.19 1.24 1.13 1.13 1.09 1.08 1.04 1.11 0.91
Cash ratio 0.71 0.71 0.70 0.57 0.65 0.59 0.53 0.55 0.58 0.61 0.77 0.73 0.78 0.71 0.63 0.63 0.63 0.58 0.53 0.47

The liquidity ratios of News Corp A indicate its ability to meet short-term obligations and manage its current liabilities efficiently.

The current ratio has shown some fluctuation over the past few quarters, ranging from 1.25 to 1.44. While generally above 1, indicating that the company has more current assets than current liabilities, the current ratio has not shown a consistent upward or downward trend.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown similar fluctuations between 1.00 and 1.28. This suggests that the company may have a relatively stable position in the short term.

The cash ratio, which indicates the proportion of cash and cash equivalents to current liabilities, has varied between 0.47 and 0.78. This ratio has also not shown a clear trend but generally remains at a level that indicates the company has sufficient cash on hand to cover its short-term obligations.

Overall, News Corp A's liquidity ratios demonstrate a relatively stable liquidity position with the ability to meet its short-term obligations, although some fluctuations have been observed over the past few quarters. Further analysis and monitoring of these ratios will be necessary to assess the company's liquidity management in the future.

Additional liquidity measure

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
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

The cash conversion cycle of News Corp A has shown fluctuations over the past several quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From December 2019 to March 2020, there was an increase in the cash conversion cycle from 57.38 days to 52.64 days. However, it then decreased to 41.11 days in June 2020, indicating an improvement in the efficiency of the company's operations.

Subsequently, there was an increase in the cash conversion cycle, peaking at 62.15 days in September 2020. This was followed by a decreasing trend, reaching a low of 41.44 days in June 2023, signaling an improvement in the company's collections, production, and payment cycles.

However, the cycle increased again in the following quarters, with the latest reported figure being 52.89 days in June 2024. This suggests that the company may be facing challenges in managing its working capital efficiently.

Overall, a lower cash conversion cycle is generally favorable as it indicates that the company is able to generate cash quickly from its operations. News Corp A should continue to monitor and analyze its cash conversion cycle to identify opportunities for improvement in its working capital management.