News Corp A (NWSA)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.72% | 57.50% | 57.74% | 56.17% | 39.29% |
| Operating profit margin | -28.02% | -28.13% | -26.19% | -30.23% | -49.47% |
| Pretax margin | 4.54% | 2.96% | 6.50% | 4.18% | -13.85% |
| Net profit margin | 2.64% | 1.51% | 6.00% | 3.53% | -14.09% |
News Corp A's profitability ratios show a mixed performance over the past five years. The gross profit margin has been relatively stable, ranging from 56.17% to 57.74%, indicating a consistent ability to generate profits from its core operations. However, the operating profit margin has been negative in all years, indicating that the company's operating expenses have exceeded its gross profits. This suggests operational inefficiencies or high costs that are impacting profitability.
The pretax margin has shown variability, with a significant improvement in 2022 compared to the prior years. This indicates that the company's ability to generate profits before accounting for taxes has fluctuated over time. The net profit margin, which reflects the company's final profits after accounting for all expenses, shows a similar trend with fluctuations in profitability. The net profit margin ranged from a negative figure in 2020 to a high of 6.00% in 2022.
Overall, News Corp A's profitability ratios suggest that while the company has been able to consistently generate gross profits, its operational efficiency and cost management may need improvement to translate these profits into bottom-line growth. Further analysis of the company's cost structure and revenue streams may be beneficial in understanding the factors influencing its profitability ratios over the years.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -16.94% | -16.42% | -15.79% | -16.87% | -31.25% |
| Return on assets (ROA) | 1.59% | 0.88% | 3.62% | 1.97% | -8.90% |
| Return on total capital | -25.75% | -25.25% | -24.73% | -26.95% | -50.84% |
| Return on equity (ROE) | 3.28% | 1.85% | 7.58% | 4.02% | -16.74% |
The profitability ratios of News Corp A have shown varying trends over the past five years. The Operating Return on Assets (Operating ROA) has been consistently negative, with the lowest value in 2020 at -31.25% and an improvement to -16.94% in 2024. This indicates that the company's operating income generated from its assets has been insufficient to cover its operating expenses.
In terms of Return on Assets (ROA), there was a significant improvement from -8.90% in 2020 to 3.62% in 2022, followed by a slight decrease to 1.59% in 2024. This shows that the company has been able to generate a modest return on its total assets, with fluctuations over the years.
The Return on Total Capital ratio has also shown a negative trend, with values ranging from -50.84% in 2020 to -25.75% in 2024. This indicates that the company's overall capital has not been efficiently utilized to generate returns.
On the other hand, the Return on Equity (ROE) has shown improvement over the years, with values increasing from -16.74% in 2020 to 7.58% in 2022, before decreasing to 3.28% in 2024. This suggests that the company's profitability in relation to shareholder equity has improved, albeit with some fluctuations.
Overall, while there have been improvements in some profitability ratios such as ROA and ROE, the company still faces challenges in generating sufficient returns from its operating assets and total capital. It is important for News Corp A to focus on increasing efficiencies and profitability in order to enhance shareholder value in the long term.