News Corp A (NWSA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.17 | 0.18 | 0.18 | 0.17 | 0.17 | 0.18 | 0.18 | 0.16 | 0.14 | 0.12 | 0.12 | 0.14 | 0.06 | 0.07 | 0.08 | 0.08 | 0.08 | 0.07 | 0.04 |
| Debt-to-capital ratio | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.25 | 0.23 | 0.19 | 0.19 | 0.22 | 0.11 | 0.11 | 0.14 | 0.13 | 0.12 | 0.12 | 0.08 |
| Debt-to-equity ratio | 0.35 | 0.35 | 0.36 | 0.37 | 0.36 | 0.37 | 0.37 | 0.38 | 0.34 | 0.30 | 0.23 | 0.24 | 0.28 | 0.12 | 0.13 | 0.16 | 0.16 | 0.14 | 0.13 | 0.08 |
| 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 |
The solvency ratios of News Corp A over the past few quarters indicate a stable financial position with consistent leverage levels. The debt-to-assets ratio has been relatively steady around 0.17 to 0.18, suggesting that the company has a modest amount of debt in relation to its total assets.
The debt-to-capital and debt-to-equity ratios also show a similar trend, hovering between 0.25 to 0.27 and 0.30 to 0.37, respectively. These ratios indicate that the company relies moderately on debt to finance its operations and investments, with a stronger inclination towards equity over debt as seen in the debt-to-equity ratio.
The financial leverage ratio has remained relatively stable between 2.00 to 2.11, indicating that News Corp A has been able to efficiently utilize its debt and equity to generate returns for its shareholders.
Overall, based on the solvency ratios analyzed, News Corp A appears to have a balanced capital structure with a reasonable level of debt and a well-managed capital base. However, it is important for the company to monitor these ratios closely to ensure sustainable financial health and management of its leverage levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -28.55 | -26.88 | -25.05 | -28.97 | -27.79 | -26.93 | -27.02 | -26.92 | -27.47 | -32.15 | -37.87 | -42.28 | -53.38 | -10.23 | -36.10 | -45.35 | -62.94 | -27.14 | 1.78 | 1.36 |
The interest coverage ratio for News Corp A has been consistently negative over the past few quarters, indicating that the company's operating income is insufficient to cover its interest expenses. This trend raises concerns about the company's financial health and ability to meet its debt obligations. The extreme negative values, such as -28.55, -26.88, and -25.05, suggest significant financial distress and a high risk of default.
The company's interest coverage ratio deteriorated further in the most recent quarters, with values reaching as low as -37.87, -42.28, and -53.38. These figures highlight the severity of News Corp A's financial challenges and the urgent need for management to address its debt burden and improve profitability.
It is evident that News Corp A has been struggling to generate enough operating income to cover its interest payments, which could lead to potential liquidity issues and credit rating downgrades. Investors and creditors may view the company as a high-risk investment due to its poor interest coverage performance. Management should take proactive steps to improve the company's financial performance and enhance its ability to service its debt obligations.