News Corp A (NWSA)
Financial leverage ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,684,000 | 16,544,000 | 16,681,000 | 16,475,000 | 16,921,000 | 17,034,000 | 16,891,000 | 16,387,000 | 17,221,000 | 17,419,000 | 16,520,000 | 16,418,000 | 16,771,000 | 15,397,000 | 15,094,000 | 14,400,000 | 14,261,000 | 14,428,000 | 16,282,000 | 16,233,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 7,582,000 | 7,832,000 | 8,958,000 | 8,714,000 |
| Financial leverage ratio | 2.05 | 2.05 | 2.04 | 2.09 | 2.10 | 2.11 | 2.08 | 2.08 | 2.09 | 2.07 | 1.97 | 2.00 | 2.04 | 1.88 | 1.86 | 1.89 | 1.88 | 1.84 | 1.82 | 1.86 |
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 some fluctuations over the past few quarters. From December 2019 to June 2020, the ratio ranged between 1.82 and 1.89, indicating a relatively stable leverage position during that period. However, starting from September 2020, the ratio began to increase steadily, reaching a peak of 2.11 in June 2023 before slightly decreasing to 2.05 in June 2024.
This increasing trend in the financial leverage ratio suggests that News Corp A has been using more debt to finance its operations and investments compared to its equity. A higher leverage ratio indicates a higher level of financial risk due to increased debt obligations, potentially leading to higher interest payments and a greater impact on profitability in times of economic downturn.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of News Corp A to assess its ability to meet its debt obligations and manage financial risk effectively. Additionally, management should consider striking a balance between debt and equity financing to maintain a healthy capital structure and sustainable growth over the long term.
Peer comparison
Jun 30, 2024