News Corp A (NWSA)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,053,000 | 959,000 | 928,000 | 863,000 | 759,000 | 636,000 | 606,000 | 419,000 | 399,000 | 375,000 | 407,000 | 636,000 | 866,000 | 767,000 | 739,000 | 662,000 | 440,000 | 617,000 | -551,000 | -718,000 |
| Interest expense (ttm) | US$ in thousands | 40,000 | 40,000 | 58,000 | 62,000 | 67,000 | 71,000 | 77,000 | 96,000 | 100,000 | 109,000 | 109,000 | 104,000 | 99,000 | 89,000 | 76,000 | 67,000 | 53,000 | 44,000 | 41,000 | 37,000 |
| Interest coverage | 26.32 | 23.98 | 16.00 | 13.92 | 11.33 | 8.96 | 7.87 | 4.36 | 3.99 | 3.44 | 3.73 | 6.12 | 8.75 | 8.62 | 9.72 | 9.88 | 8.30 | 14.02 | -13.44 | -19.41 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,053,000K ÷ $40,000K
= 26.32
The interest coverage ratio for News Corp A has demonstrated significant variability over the analyzed period, reflecting notable fluctuations in its capacity to meet interest obligations through its earnings before interest and taxes (EBIT).
In the fiscal periods ending September 30, 2020, and December 31, 2020, the interest coverage ratio was markedly negative at -19.41 and -13.44, respectively. These negative figures indicate that the company's EBIT was insufficient to cover interest expenses, suggesting substantial earnings deficits and potential financial distress during this timeframe.
From March 31, 2021, onward, a substantial improvement is observed, with ratios turning positive and increasing from 14.02 to 8.30 by June 30, 2021. This transition signifies a notable enhancement in the company's earnings ability to cover interest payments, possibly driven by operational improvements or restructuring efforts.
Throughout 2021, the ratio remained robust, maintaining values around 9.88 to 9.72, indicating continued strength in interest coverage. However, by the second quarter of 2022, the ratio experienced a slight decline to 8.75, and further decreased to 6.12 by September 30, 2022. The decline in interest coverage during this period suggests a reduction in EBIT or increased interest expenses, representing a potential concern regarding the company's ability to service debt.
The subsequent quarters show a downward trend, with the ratio declining to 3.73 at year-end 2022 and further decreasing to 3.44 by March 2023. Despite this decline, the ratio remains positive, implying that the company still generates sufficient earnings to cover interest costs, though with diminished safety margins.
In the latter half of 2023, the ratio modestly increased, reaching 4.36 in September 2023, but only to decline again to 3.99 by June 30, 2023. This fluctuation indicates some instability in earnings relative to interest obligations.
Notably, a significant turnaround occurs starting in late 2023 and early 2024. The interest coverage ratio increases substantially, reaching 7.87 at the end of 2023, and continues to improve through 2024 and into 2025, reaching 8.96, 11.33, and 13.92 in successive quarters respectively. The upward trend suggests a strong recovery in earnings capacity and an increased margin of safety in interest payments.
Overall, the interest coverage ratio for News Corp A reflects periods of severe financial stress in late 2020, followed by a steady recovery beginning in 2021, and culminating in a strong upward trajectory during 2024 and 2025. The improving trend indicates enhanced profitability and financial stability, positioning the company better to meet its interest obligations in the forecasted periods.
Peer comparison
Jun 30, 2025