News Corp A (NWSA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 | 7,582,000 |
| Debt-to-capital ratio | 0.26 | 0.27 | 0.25 | 0.22 | 0.13 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,855,000K ÷ ($2,855,000K + $8,120,000K)
= 0.26
The debt-to-capital ratio of News Corp A has shown fluctuations over the past five years. In June 2020, the ratio was at its lowest point at 0.13, indicating a conservative level of debt relative to the company's total capital. However, there was a steady increase in the ratio over the next three years, reaching its peak at 0.27 in June 2023. This suggests that the company took on more debt relative to its capital during this period.
In the most recent fiscal year ending June 30, 2024, News Corp A managed to decrease its debt-to-capital ratio slightly to 0.26. While still higher compared to the ratio in 2020, this reduction could signal management's efforts to better manage debt levels.
Overall, the trend in the debt-to-capital ratio of News Corp A indicates a varying approach to leveraging debt in relation to capital over the past five years, with a notable increase in debt relative to capital between 2020 and 2023, followed by a slight decline in the most recent year. It is important to consider the company's overall financial strategy and the industry landscape when assessing the implications of these changes in the debt-to-capital ratio.
Peer comparison
Jun 30, 2024