Stock Analysis on Net

Twenty-First Century Fox Inc. (NASDAQ:FOX)

This company has been moved to the archive! The financial data has not been updated since February 6, 2019.

Financial Reporting Quality: Aggregate Accruals

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Twenty-First Century Fox Inc., balance sheet computation of aggregate accruals

US$ in millions

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Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Operating Assets
Total assets 53,831 50,724 48,365 50,051 54,793 50,944
Less: Cash and cash equivalents 7,622 6,163 4,424 8,428 5,415 6,659
Operating assets 46,209 44,561 43,941 41,623 49,378 44,285
Operating Liabilities
Total liabilities 32,269 33,092 32,932 31,244 33,351 30,300
Less: Current borrowings 1,054 457 427 244 799 137
Less: Non-current borrowings 18,469 19,456 19,298 18,795 18,259 16,321
Operating liabilities 12,746 13,179 13,207 12,205 14,293 13,842
 
Net operating assets1 33,463 31,382 30,734 29,418 35,085 30,443
Balance-sheet-based aggregate accruals2 2,081 648 1,316 (5,667) 4,642
Financial Ratio
Balance-sheet-based accruals ratio3 6.42% 2.09% 4.38% -17.57% 14.17%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).

1 2018 Calculation
Net operating assets = Operating assets – Operating liabilities
= 46,20912,746 = 33,463

2 2018 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2018 – Net operating assets2017
= 33,46331,382 = 2,081

3 2018 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 2,081 ÷ [(33,463 + 31,382) ÷ 2] = 6.42%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Twenty-First Century Fox Inc. deteriorated earnings quality from 2017 to 2018.

Cash-Flow-Statement-Based Accruals Ratio

Twenty-First Century Fox Inc., cash flow statement computation of aggregate accruals

US$ in millions

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Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Net income attributable to Twenty-First Century Fox, Inc. stockholders 4,464 2,952 2,755 8,306 4,514 7,097
Less: Net cash provided by operating activities 4,227 3,785 3,048 3,617 2,964 3,002
Less: Net cash (used in) provided by investing activities (1,177) (752) (1,638) 6,736 (935) 86
Cash-flow-statement-based aggregate accruals 1,414 (81) 1,345 (2,047) 2,485 4,009
Financial Ratio
Cash-flow-statement-based accruals ratio1 4.36% -0.26% 4.47% -6.35% 7.58%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).

1 2018 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 1,414 ÷ [(33,463 + 31,382) ÷ 2] = 4.36%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Twenty-First Century Fox Inc. deteriorated earnings quality from 2017 to 2018.