News Corp A (NWSA)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 933,000 | 631,000 | 430,000 | 1,042,000 | 615,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,774,000 | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 |
| Return on total capital | 10.63% | 7.77% | 5.33% | 12.67% | 7.49% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $933,000K ÷ ($—K + $8,774,000K)
= 10.63%
The analysis of News Corp A's return on total capital over the specified period reveals significant fluctuations, reflecting varying levels of operational efficiency and capital utilization. As of June 30, 2021, the return on total capital was recorded at 7.49%, indicating a moderate level of profitability generated relative to the company's invested capital. This figure increased markedly by June 30, 2022, reaching 12.67%, which suggests a substantial improvement in the company's ability to generate profits from its total capital base during that year.
However, this positive trend was not sustained into the subsequent period. By June 30, 2023, the return declined sharply to 5.33%, falling below the 2021 level and indicating a material deterioration in capital efficiency or profitability. Several factors could have contributed to this downturn, such as increased costs, reduced revenues, or strategic adjustments impacting overall profitability.
In the following year, June 30, 2024, there was a recovery, with the return rising to 7.77%. This improvement suggests a partial rebound in operational performance or efficiency gains. The most recent data point, June 30, 2025, shows further positive movement, with the return increasing to 10.63%. This upward trend indicates a substantial recovery and a more robust utilization of the company's capital base, approaching levels seen earlier in the period.
Overall, the company's return on total capital demonstrates volatility over the examined timeframe, with a peak in 2022, a notable dip in 2023, and subsequent recovery through 2024 and 2025. This pattern underscores periods of both operational challenges and strategic improvements, highlighting the importance of ongoing management efforts to sustain and enhance capital efficiency.
Peer comparison
Jun 30, 2025