News Corp A (NWSA)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,504,000 | 16,684,000 | 16,921,000 | 17,221,000 | 16,771,000 |
| Total stockholders’ equity | US$ in thousands | 8,774,000 | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 |
| Financial leverage ratio | 1.77 | 2.05 | 2.10 | 2.09 | 2.04 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,504,000K ÷ $8,774,000K
= 1.77
The financial leverage ratio of News Corp A exhibits a relatively stable trend over the analyzed period from June 30, 2021, to June 30, 2025. At the end of June 2021, the ratio stands at 2.04, indicating that the company's total assets are approximately twice its equity, with debt constituting a significant component of its capital structure.
Between June 30, 2022, and June 30, 2023, the ratio shows a marginal increase, reaching 2.09 and then 2.10, respectively. This suggests a slight uptick in the degree of leverage, implying that the company may have increased its debt levels relative to equity during this period. Such an increment can be associated with leveraged growth strategies or refinancing activities.
However, from June 30, 2024, onwards, a noticeable reduction in leverage is observed, with the ratio declining to 2.05 and further decreasing to 1.77 by June 30, 2025. The decrease indicates a reduction in the company's financial leverage, which could result from deleveraging efforts, debt repayment, or a strategic shift toward less debt-dependent operations.
Overall, the trend signifies a move from relatively higher leverage levels towards a lower leverage position over the analyzed timeframe. The decline in the ratio in the later period suggests an effort to optimize the capital structure by reducing debt levels, potentially enhancing financial stability and reducing risk exposure. This pattern reflects prudent financial management, especially given the fluctuations within the broader context of corporate financing.
Peer comparison
Jun 30, 2025