News Corp A (NWSA)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,855,000 | 2,940,000 | 2,776,000 | 2,285,000 | 1,183,000 |
| Total assets | US$ in thousands | 16,684,000 | 16,921,000 | 17,221,000 | 16,771,000 | 14,261,000 |
| Debt-to-assets ratio | 0.17 | 0.17 | 0.16 | 0.14 | 0.08 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,855,000K ÷ $16,684,000K
= 0.17
The debt-to-assets ratio of News Corp A has been relatively stable over the past five years, ranging from 0.08 to 0.17. This ratio indicates the extent to which the company's assets are financed by debt rather than equity. A lower ratio typically suggests lower financial risk as it implies that the company has a smaller proportion of debt relative to its total assets.
In the case of News Corp A, the consistent and relatively low debt-to-assets ratios over the years indicate a conservative approach to debt financing. The company has been able to maintain a healthy balance between debt and assets, minimizing the risks associated with high leverage. However, it is important to note that the optimal level of debt varies across industries and depends on various factors such as interest rates, capital structure preferences, and growth opportunities. Overall, News Corp A's stable debt-to-assets ratio reflects prudent financial management and a cautious approach to debt utilization.
Peer comparison
Jun 30, 2024