News Corp A (NWSA)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,826,000 | -2,779,000 | -2,720,000 | -2,829,000 | -4,456,000 |
| Long-term debt | US$ in thousands | 2,855,000 | 2,940,000 | 2,776,000 | 2,285,000 | 1,183,000 |
| Total stockholders’ equity | US$ in thousands | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 | 7,582,000 |
| Return on total capital | -25.75% | -25.25% | -24.73% | -26.95% | -50.84% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,826,000K ÷ ($2,855,000K + $8,120,000K)
= -25.75%
The return on total capital for News Corp A has demonstrated a negative trend over the past five years, with figures ranging from -50.84% in 2020 to -25.75% in 2024. This indicates that the company's ability to generate profits from its total capital employed has been consistently poor. The declining trend in return on total capital suggests that the company may be facing challenges in efficiently utilizing its capital resources to generate returns for its shareholders. It is essential for News Corp A to focus on improving its operational efficiency and profitability in order to enhance its return on total capital and overall financial performance.
Peer comparison
Jun 30, 2024