News Corp A (NWSA)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -2,826,000 | -2,779,000 | -2,720,000 | -2,829,000 | -4,456,000 |
| Total assets | US$ in thousands | 16,684,000 | 16,921,000 | 17,221,000 | 16,771,000 | 14,261,000 |
| Operating ROA | -16.94% | -16.42% | -15.79% | -16.87% | -31.25% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-2,826,000K ÷ $16,684,000K
= -16.94%
News Corp A's operating return on assets (operating ROA) has shown fluctuations over the past five years. In the latest period ending June 30, 2024, the operating ROA was at -16.94%, a slight increase from the previous year's -16.42%. Despite this improvement, the company's performance remains negative, indicating that it is not effectively generating profits from its operational assets.
Comparing the operating ROA to earlier years, we see a declining trend since June 30, 2020, when the metric was at its lowest at -31.25%. Although there has been some improvement in recent years, News Corp A still faces challenges in efficiently utilizing its assets to generate operating income.
A negative operating ROA suggests that the company is experiencing difficulties in generating profits from its core operations relative to the size of its asset base. This may raise concerns about the company's operational efficiency and profitability. News Corp A should focus on strategies to enhance its operational performance and asset utilization to improve its operating ROA in the future.
Peer comparison
Jun 30, 2024