News Corp A (NWSA)
Profitability ratios
Return on sales
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 84.57% | 70.34% | 55.57% | 56.63% | 57.31% | 58.32% | 58.84% | 43.81% | 43.52% | 42.59% | 41.10% | 43.02% | 41.62% | 40.39% |
| Operating profit margin | 7.67% | 10.16% | 9.84% | 9.15% | 8.86% | 8.73% | 8.27% | 7.39% | 7.19% | 6.71% | 7.12% | 8.75% | 9.45% | 8.65% | 8.18% | 7.53% | 6.34% | 6.76% | 6.32% | 4.71% |
| Pretax margin | 10.92% | 9.52% | 8.95% | 7.55% | 6.43% | 5.13% | 4.83% | 3.27% | 3.34% | 3.23% | 3.63% | 5.55% | 7.82% | 7.11% | 7.28% | 7.35% | 4.81% | 1.77% | -11.80% | -13.89% |
| Net profit margin | 13.96% | 5.18% | 4.41% | 3.82% | 2.89% | 2.30% | 2.40% | 1.40% | 1.51% | 2.64% | 2.94% | 4.51% | 6.00% | 4.89% | 4.94% | 5.05% | 3.53% | -0.60% | -9.89% | -11.47% |
The profitability ratios for News Corp A observed over the analyzed periods reveal significant trends and notable shifts in the company's operational efficiency and profit generation capacity.
Gross Profit Margin:
The gross profit margin demonstrated a substantial upward trajectory, particularly from late 2022 onward. Initially fluctuating around the low 40% range in 2020 and 2021, the ratio experienced a dramatic increase starting in late 2022, culminating at 70.34% as of September 2023. By December 2023, the margin reached 84.57%, with subsequent figures suggesting an effective 100% gross profit margin for the following periods, which may reflect extraordinary circumstances such as accounting adjustments, write-offs, or other anomalies. This trend indicates a significant improvement in cost management or revenue recognition, with the margins nearing perfect gross profit in recent periods.
Operating Profit Margin:
Throughout the period, the operating profit margin exhibited a steady, albeit modest, increasing trend. Starting at 4.71% in September 2020, it generally expanded to around 10.16% by March 2025, with interim fluctuations. The largest observed increase occurred toward the latter part of the period, converging around 8.73% to 10.16%, reflecting enhanced operational efficiency and better control over operating expenses relative to revenues.
Pre-Tax Margin:
The pre-tax margin showed a turnaround from negative values during 2020 (-13.89% in September 2020), indicating pre-tax losses, to consistent positive margins from early 2021 onward. After surpassing breakeven, the pre-tax margin increased gradually, reaching 9.52% by March 2025, which signifies improvements in profitability before tax considerations, possibly driven by higher revenues, cost reductions, or favorable tax strategies.
Net Profit Margin:
The net profit margin initially trended negatively through 2020 but shifted to positive territory in 2021. It displayed variability but generally ascended to around 13.96% as of June 2025. The notable increase in late 2024 and early 2025 suggests enhanced bottom-line performance, potentially due to optimized tax policies, reduced expenses, or revenue growth. The recent surge to 13.96% indicates a robust profitability position, marking a significant recovery and growth phase.
In summary, the company has experienced a marked improvement in profitability across all ratios from late 2022 onwards, characterized by soaring gross margins approaching completeness, steady enhancements in operating and pre-tax margins, and substantial growth in net profit margin by mid-2025. These trends reflect effective operational leverage, cost control, and possibly revenue enhancements or strategic financial management in recent periods.
Return on investment
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.18% | 5.76% | 5.72% | 5.02% | 4.89% | 4.78% | 4.72% | 4.44% | 4.20% | 3.99% | 4.29% | 5.53% | 5.70% | 5.07% | 4.98% | 4.47% | 3.54% | 3.86% | 3.65% | 2.88% |
| Return on assets (ROA) | 7.61% | 2.94% | 2.56% | 2.10% | 1.59% | 1.26% | 1.37% | 0.84% | 0.88% | 1.57% | 1.77% | 2.85% | 3.62% | 2.86% | 3.00% | 3.00% | 1.97% | -0.34% | -5.71% | -7.00% |
| Return on total capital | 12.00% | 11.69% | 11.39% | 10.46% | 9.35% | 7.90% | 7.41% | 5.31% | 4.95% | 4.64% | 5.02% | 8.08% | 10.53% | 9.10% | 8.82% | 8.06% | 5.36% | 7.54% | -6.78% | -9.40% |
| Return on equity (ROE) | 13.45% | 5.94% | 5.08% | 4.30% | 3.28% | 2.58% | 2.79% | 1.76% | 1.85% | 3.31% | 3.68% | 5.93% | 7.58% | 5.92% | 5.92% | 5.99% | 4.02% | -0.65% | -10.60% | -13.20% |
The profitability ratios of News Corp A reveal several notable trends and patterns from September 2020 through June 2025.
Operating Return on Assets (Operating ROA): This indicator demonstrates a generally upward trajectory over the analyzed period. Starting at 2.88% in September 2020, it gradually increased, reaching a peak of 5.76% in March 2025 before a slight decline to 4.18% in June 2025. This trend suggests an improvement in operational efficiency, indicating that the company has become more effective at generating operating income from its assets over time, despite some short-term fluctuations.
Return on Assets (ROA): The ROA started in negative territory at -7.00% in September 2020, reflecting substantial losses or poor asset utilization during that period. Over time, there was a consistent recovery, with ROA turning positive in June 2021 at 1.97%. The ratio experienced minor fluctuations thereafter, settling at 2.94% in March 2025 before a significant jump to 7.61% in June 2025. This upward trend signals improved profitability and more effective asset utilization, culminating in a robust return in mid-2025.
Return on Total Capital: This ratio exhibits a significant recovery after negative values in 2020 (-9.40% in September and -6.78% in December). From March 2021 onwards, the return on total capital turned positive and generally trended upward, reaching 12.00% by June 2025. The upward movement indicates enhanced efficiency in generating profits relative to the total capital employed, reflecting successful strategic and operational initiatives.
Return on Equity (ROE): The ROE displays initial negative values through September 2020 (-13.20%) and December 2020 (-10.60%). The ratio improved markedly starting in March 2021, turning positive at -0.65%, then rising steadily with fluctuations to peak at 13.45% in June 2025. The substantial increase towards mid-2025 indicates significant growth in shareholder returns, driven by improved profitability, stronger earnings, and possibly enhanced leverage or equity management strategies.
Overall Summary: The comprehensive analysis indicates that News Corp A experienced a recovery and improvement in its profitability ratios from 2020 onward. The company transitioned from negative profitability indicators to consistently positive and increasing ratios, especially evident in ROA, return on total capital, and ROE, by mid-2025. These trends point to increasingly efficient operations, improved earning capacity from assets and capital, and better shareholder returns over the analyzed period.