News Corp A (NWSA)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,503,000 | 1,425,000 | 1,502,000 | 1,498,000 | 1,203,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 | 2,682,000 |
| Quick ratio | 1.20 | 1.10 | 1.00 | 1.24 | 1.08 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,960,000K
+ $214,000K
+ $1,503,000K)
÷ $3,055,000K
= 1.20
The quick ratio of News Corp A has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. In Jun 2024, the quick ratio improved to 1.20 from 1.10 in Jun 2023, indicating an increase in the company's ability to cover its short-term liabilities with its liquid assets.
However, when comparing the current ratio to earlier years, it is clear that there have been fluctuations in the company's liquidity position. In Jun 2022 and Jun 2020, the quick ratio was 1.00 and 1.08 respectively, which indicates a tighter liquidity position compared to Jun 2024. On the other hand, in Jun 2021, the quick ratio was 1.24, showing a stronger liquidity position than the most recent year.
Overall, while the recent increase in the quick ratio is a positive sign for News Corp A's short-term liquidity position, it is important for investors and analysts to monitor the company's liquidity trends over time to assess its ability to meet its short-term obligations effectively.
Peer comparison
Jun 30, 2024