News Corp A (NWSA)
Interest coverage
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 933,000 | 631,000 | 430,000 | 1,042,000 | 615,000 |
| Interest expense | US$ in thousands | 10,000 | 85,000 | 100,000 | 99,000 | 53,000 |
| Interest coverage | 93.30 | 7.42 | 4.30 | 10.53 | 11.60 |
June 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $933,000K ÷ $10,000K
= 93.30
The interest coverage ratios for News Corp A over the specified periods reveal notable fluctuations indicative of varying capacity to meet interest obligations from core earnings. As of June 30, 2021, the ratio stood at 11.60, suggesting a strong ability to cover interest expenses. This high ratio continued into June 30, 2022, decreasing slightly to 10.53, yet still reflecting a comfortable buffer.
By June 30, 2023, there was a significant decline to 4.30, indicating a deterioration in earnings relative to interest obligations, and suggesting heightened financial risk or a reduction in earnings capacity. Such a ratio, approaching 4, generally signifies increased vulnerability to interest payment difficulties, especially if earnings decline further or interest expenses increase.
A subsequent improvement is observed for June 30, 2024, with the ratio rising to 7.42, reflecting a partial recovery in earnings or a reduction in interest burden. However, the most remarkable change occurs by June 30, 2025, where the ratio surges to 93.30, indicating a substantial enhancement in earnings generation relative to interest expenses, or potential non-recurring factors contributing significantly to earnings.
Overall, these fluctuations underscore periods of both strong interest coverage and notable stress, with the sharp increase by 2025 suggesting a highly favorable position or extraordinary earnings supporting interest obligations. Conversely, the dip in 2023 warrants closer scrutiny to assess underlying factors affecting earnings and interest coverage during that interval.
Peer comparison
Jun 30, 2025