News Corp A (NWSA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,053,000 | 959,000 | 928,000 | 863,000 | 759,000 | 636,000 | 606,000 | 419,000 | 399,000 | 375,000 | 407,000 | 636,000 | 866,000 | 767,000 | 739,000 | 662,000 | 440,000 | 617,000 | -551,000 | -718,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,774,000 | 8,203,000 | 8,149,000 | 8,253,000 | 8,120,000 | 8,051,000 | 8,182,000 | 7,892,000 | 8,064,000 | 8,077,000 | 8,115,000 | 7,872,000 | 8,222,000 | 8,425,000 | 8,383,000 | 8,210,000 | 8,211,000 | 8,188,000 | 8,131,000 | 7,639,000 |
| 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,053,000K ÷ ($—K + $8,774,000K)
= 12.00%
The analysis of News Corp A’s return on total capital (ROTC) over the specified period reflects notable fluctuations and an overall trend towards improvement. During the initial period ending September 30, 2020, the company experienced a negative ROTC of -9.40%, indicating that it was not generating sufficient returns to cover its total capital costs. This negative performance persisted into December 2020 with a ROTC of -6.78%, though the decline in losses suggested some early signs of recovery.
From the first quarter of 2021 onward, a marked turnaround is observed as the ROTC transitioned into positive territory, registering 7.54% in March 2021. This shift signifies that the company began generating returns exceeding its total capital, reflecting improved operational efficiency or favorable market conditions. The positive trend continued through the subsequent quarters, with ROTC values of 5.36% in June 2021, 8.06% in September 2021, and further increases to 8.82% and 9.10% in December 2021 and March 2022, respectively.
Throughout 2022, the ROTC maintained generally positive levels, peaking at 10.53% in June. However, a slight decline was observed in the latter part of 2022, with the value decreasing to 8.08% in September and further dropping to 5.02% by December. The subsequent quarters saw continued fluctuations with a gradual decline and stabilization around 4.64% in March 2023, followed by minor increases to 4.95% in June and 5.31% in September 2023.
Beginning in late 2023 and extending into 2024, a positive trend resumes, with the ROTC reaching 7.41% in December 2023, and subsequently increasing to 7.90% in the first quarter of 2024, 9.35% in June 2024, and reaching 10.46% by September 2024. The upward momentum continues into the subsequent quarters, culminating in a projected ROTC of 12.00% by June 2025.
Overall, the company's historic trajectory demonstrates a transition from significant negative returns at the onset to sustained positive returns, with a recent period of accelerating performance. This suggests improved operational execution and potentially favorable market dynamics contributing to News Corp A’s enhanced ability to generate returns on its total capital. The ongoing upward trend reinforces a positive outlook, contingent upon continued operational stability and market conditions.
Peer comparison
Jun 30, 2025