News Corp A (NWSA)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.37% | 100.00% | 100.00% | 100.00% | 100.00% |
| Operating profit margin | 11.42% | 7.98% | 7.15% | 9.45% | 6.34% |
| Pretax margin | 10.92% | 5.41% | 3.34% | 7.82% | 4.81% |
| Net profit margin | 5.49% | 2.64% | 1.51% | 6.00% | 3.53% |
The analyzed profitability ratios for News Corp A over the fiscal years ending June 30 are as follows:
Gross Profit Margin: The gross profit margin remained at a perfect 100% from 2021 through 2024, indicating that the company's cost of goods sold (COGS) was effectively negligible or that the gross profit was equal to total revenue. This unusual consistency suggests that either the nature of the company's revenue streams does not involve traditional COGS or that the reported figures are rounded or not reflective of typical gross margin calculations. In 2025, there is a notable decline to 50.37%, signaling a significant decrease in gross profitability or a change in revenue or cost recognition.
Operating Profit Margin: The operating profit margin experienced growth from 6.34% in 2021 to a peak of 9.45% in 2022. It then declined slightly in 2023 to 7.15%, before modestly increasing again in 2024 to 7.98%. The most recent figure for 2025 shows a substantial increase to 11.42%. This trend indicates a recovery or improvement in operating efficiency or profit generation capability after a dip in 2023. The rise in 2025 may reflect better operational control, cost management, or revenue growth at the operating level.
Pre-tax Margin: The pre-tax margin followed a similar trajectory, rising from 4.81% in 2021 to 7.82% in 2022, then decreasing to 3.34% in 2023, and subsequently increasing to 5.41% in 2024. The year 2025 shows a significant improvement to 10.92%, aligning with the enhancements in operating margin. The fluctuations suggest varying levels of non-operating expenses, interest, or other income impacting profitability before taxes.
Net Profit Margin: The net profit margin increased from 3.53% in 2021 to 6.00% in 2022, then drastically fell to 1.51% in 2023. It recovered somewhat in 2024 to 2.64% and then experienced a meaningful rise to 5.49% in 2025. The sharp decline in 2023 indicates increased expenses, taxes, or other factors reducing net profitability. The subsequent upward trend reflects improved bottom-line performance, possibly due to revenue growth, cost control, or both.
Overall, News Corp A demonstrated stable gross profit margins until 2024, with a sharp decline in 2025. Operating, pre-tax, and net margins showed variability across the years, with significant recovery in the most recent period, suggesting improvements in operational efficiency and profitability. The notable increase in margins in 2025 highlights a potential turning point or strategic improvement in the company's performance.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.22% | 4.82% | 4.17% | 5.70% | 3.54% |
| Return on assets (ROA) | 2.99% | 1.59% | 0.88% | 3.62% | 1.97% |
| Return on total capital | 10.63% | 7.77% | 5.33% | 12.67% | 7.49% |
| Return on equity (ROE) | 5.29% | 3.28% | 1.85% | 7.58% | 4.02% |
The profitability ratios of News Corp A over the period from June 2021 to June 2025 reveal fluctuations and some general trends in the company's ability to generate earnings relative to its assets, capital, and equity.
Operating Return on Assets (Operating ROA):
This ratio indicates the company's efficiency in generating operating income from its assets. It increased from 3.54% in June 2021 to a peak of 5.70% in June 2022, suggesting improved operational efficiency during that period. Following this peak, the ratio declined to 4.17% in June 2023 but subsequently showed a recovery to 4.82% by June 2024 and further increased to 6.22% in June 2025, indicating a generally improving operational performance with some volatility.
Return on Assets (ROA):
ROA, reflecting overall profitability after considering all expenses and non-operational factors, grew from 1.97% in June 2021 to 3.62% in June 2022. However, there was a notable decline to 0.88% in June 2023, reflecting a period of reduced overall profitability. The subsequent rise to 1.59% in June 2024 and further to 2.99% in June 2025 suggests a recovery trend in the company's overall profit-generating ability from its assets.
Return on Total Capital:
This ratio measures the efficiency of employing total capital (equity plus debt) to generate profits. It increased substantially from 7.49% in June 2021 to 12.67% in June 2022, indicating significant gains in total capital profitability. The ratio then experienced a decline to 5.33% in June 2023, before recovering to 7.77% in June 2024 and further improving to 10.63% in June 2025, reflecting a pattern of volatility but a general trend toward increased effectiveness in capital utilization.
Return on Equity (ROE):
ROE provides insight into the company's profitability from shareholders' perspective. It rose from 4.02% in June 2021 to 7.58% in June 2022, illustrating enhanced returns for shareholders during that period. The ratio then fell sharply to 1.85% in June 2023, indicating a significant reduction in shareholder returns. Nonetheless, it rebounded to 3.28% in June 2024 and further increased to 5.29% in June 2025, demonstrating a gradual recovery in shareholder profitability.
Overall, News Corp A experienced periods of improvement and decline across these profitability ratios. The most recent data indicates a positive trend, with ratios such as Operating ROA, ROA, Return on Total Capital, and ROE all showing gains relative to earlier periods, especially towards June 2025. This suggests recent improvements in both operational efficiency and profitability relative to capital and equity employed.