News Corp A (NWSA)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,684,000 | 16,921,000 | 17,221,000 | 16,771,000 | 14,261,000 |
| Total stockholders’ equity | US$ in thousands | 8,120,000 | 8,064,000 | 8,222,000 | 8,211,000 | 7,582,000 |
| Financial leverage ratio | 2.05 | 2.10 | 2.09 | 2.04 | 1.88 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,684,000K ÷ $8,120,000K
= 2.05
The financial leverage ratio of News Corp A has shown a fluctuating trend over the past five years, ranging from 1.88 in Jun 30, 2020, to 2.10 in Jun 30, 2023. The ratio indicates the proportion of the company's total assets that are financed by debt compared to equity.
In Jun 30, 2024, the financial leverage ratio decreased slightly to 2.05 from the previous year's value of 2.10. This suggests that News Corp A has reduced its reliance on debt financing relative to equity, which could be viewed positively as it signifies a lower level of financial risk.
Overall, the company's financial leverage ratio has remained relatively stable around the 2.00 mark over the years, indicating a balanced mix of debt and equity in its capital structure. Investors and stakeholders may interpret this as a moderate level of leverage that provides potential for growth while mitigating excessive financial risk.
Peer comparison
Jun 30, 2024