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

The financial data reveals fluctuating performance trends over the six-year period.

Net Operating Profit After Taxes (NOPAT)

The NOPAT shows significant variability. It started at 7,896 million USD in mid-2013, sharply declined to 4,517 million USD in 2014, then surged to a peak of 9,417 million USD in 2015. Subsequently, it again decreased to levels around 4,000 to 4,600 million USD during the last three recorded years. This pattern indicates unstable profitability from operations, with a notable peak in the middle of the period followed by a pronounced reduction and stabilization at lower values.

Cost of Capital

The cost of capital gradually trended downward from 14.25% in 2013 to its lowest point of 12.75% in 2016. After this period, it rose again, reaching 14.42% in 2018, the highest in the observed range. This rising trend in the later years suggests increased risks or changes in financing conditions affecting the overall capital cost by the end of the period.

Invested Capital

Invested capital remained relatively stable but exhibited a moderate declining trend in the middle years, decreasing from 48,265 million USD in 2014 to 42,462 million USD in 2016. Thereafter, it increased again, reaching 47,272 million USD by 2018. This fluctuation may reflect changes in asset investments or capital manage­ment strategies over time.

Economic Profit

The economic profit metric showed considerable volatility, with positive values interspersed with notable negative results. It was positive in 2013 at 1,563 million USD, turned substantially negative in 2014 with -2,241 million USD, rose to a high of 3,379 million USD in 2015, and then followed by consecutive negative values from 2016 to 2018, reaching -2,146 million USD in the final year. This oscillating pattern signals challenges in consistently generating returns above the cost of capital, with the company experiencing economic losses in the majority of the latter years.

Overall, the data reflect a company grappling with profitability and value creation, with earnings and economic profit subject to large fluctuations. Despite stable invested capital levels, the rising cost of capital in recent years and recurring negative economic profits suggest potential pressures on sustainable financial performance.

Net Income Attributable to Stockholders

The net income showed notable fluctuations over the analyzed periods. It started at 7,097 million USD in 2013, then declined significantly to 4,514 million USD in 2014. In 2015, there was a strong rebound with net income increasing to 8,306 million USD, marking the highest value in the timeframe. Afterward, net income dropped sharply to 2,755 million USD in 2016 and remained relatively low in 2017, with a slight increase to 2,952 million USD. In 2018, net income rose again to 4,464 million USD, indicating partial recovery but still below the earlier peak.

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes demonstrated a pattern similar to net income but with somewhat less pronounced variation. Starting at 7,896 million USD in 2013, it decreased substantially to 4,517 million USD in 2014. NOPAT peaked at 9,417 million USD in 2015, exceeding the initial period's value. Following this peak, it declined sharply to 4,025 million USD in 2016. The next two years showed moderate growth, with NOPAT increasing to 4,273 million USD in 2017 and 4,669 million USD in 2018.

Overall Trend Analysis

Both net income and NOPAT experienced significant volatility throughout the six years. The years 2014 and 2016 are characterized by marked downturns in profitability metrics. The year 2015 stands out as a peak period for both measures, reflecting a temporary strong financial performance. After 2016, there is evidence of gradual operational improvement through 2018, though neither net income nor NOPAT returned to their earlier peak levels by the end of the period. The data suggests a cycle of recovery following considerable profit contractions, warranting further examination of underlying causes during downturn years.

Provision for income taxes from continuing operations

The provision for income taxes generally declined from 2013 to 2016, starting at 1,690 million US dollars in 2013 and decreasing steadily to 1,130 million in 2016. In 2017, there was a notable increase to 1,419 million, followed by a significant drop to a negative figure of -364 million in 2018, which may indicate a tax benefit or a reversal of previous tax provisions.

Cash operating taxes

Cash operating taxes fluctuated over the period. Beginning at 1,612 million US dollars in 2013, the figure increased to 1,707 million in 2014, then decreased to 1,504 million in 2015. A more marked decline occurred in 2016 with taxes dropping to 1,095 million. Subsequently, there was a sharp rise to 1,781 million in 2017 before falling significantly to 904 million in 2018. The fluctuations suggest variability in cash tax payments potentially linked to changing profitability or tax planning strategies.

Total reported debt & leases

The total reported debt and leases displayed fluctuations over the six-year period. Starting at $19,912 million in 2013, the debt increased to a peak of $22,748 million in 2014. Following this peak, there was a general decline in debt, descending to $20,609 million in 2015 and remaining relatively stable through 2016 and 2017, with slight increases and decreases respectively. By 2018, the debt had further decreased to $21,076 million. Overall, the debt levels demonstrate initial growth followed by a slight reduction and stabilization trend.

Total Twenty-First Century Fox, Inc. stockholders’ equity

Stockholders' equity showed an overall increasing trend despite some variability. Beginning at $16,998 million in 2013, there was a moderate increase to $17,418 million in 2014, followed by a small decrease to $17,220 million in 2015. A notable decline occurred in 2016, when equity dropped sharply to $13,661 million. After this decline, equity rebounded, increasing to $15,722 million in 2017 and further to $19,564 million in 2018, marking the highest equity value in the period.

Invested capital

Invested capital demonstrated a fluctuating but generally downward trend in the earlier years, followed by recovery in later years. It began at $44,434 million in 2013, increased to $48,265 million in 2014, then decreased significantly to $44,315 million in 2015 and further declined to $42,462 million in 2016. From 2016 onwards, invested capital increased, reaching $45,055 million in 2017 and $47,272 million in 2018, though it did not quite return to the previous peak observed in 2014.

The financial data reveals a fluctuating pattern in key economic performance indicators over the six-year period analyzed. The economic profit shows significant volatility, alternating between positive and negative values, indicating inconsistent profitability relative to the invested capital.

Economic Profit

Economic profit experienced substantial swings, beginning with a positive value of 1,563 million US dollars in 2013, followed by a sharp decline to a negative 2,241 million in 2014. It subsequently recovered to a peak of 3,379 million in 2015, but then reverted to negative figures for the remaining years, ending at negative 2,146 million in 2018. This oscillation points to periods of both value creation and destruction over the timeframe.

Invested Capital

The invested capital showed moderate fluctuations, starting at approximately 44,434 million US dollars in 2013, rising to a peak of 48,265 million in 2014, then slightly declining in subsequent years before increasing again to 47,272 million in 2018. This overall stability with minor variations suggests the company maintained a relatively consistent investment base during the period.

Economic Spread Ratio

The economic spread ratio follows a similar cyclical pattern to economic profit, with a positive spread of 3.52% in 2013, a sharp decline into negative territory (-4.64%) in 2014, a strong positive rebound reaching 7.63% in 2015, and then sustained negative rates through 2016 to 2018, ending at -4.54%. This ratio's decline into negative figures in later years illustrates diminishing returns on the invested capital relative to the cost of capital.

In summary, the observed data reflects a company facing challenges in sustaining consistent economic profitability, despite relatively stable invested capital. The oscillations in economic profit and economic spread ratios indicate periods of profitable operations interspersed with intervals of value erosion, signaling potential volatility in operational performance or changes in cost structures during the analyzed timeframe.

Adjusted Revenues

The adjusted revenues exhibit variability over the observed period. Initially, there is a notable increase from 27,472 million USD in mid-2013 to 31,880 million USD in mid-2014. This peak is followed by a decline, reaching 27,383 million USD in mid-2016. Subsequently, revenues show a recovery trend, rising to 30,498 million USD by mid-2018. Overall, the adjusted revenues display fluctuations with a general recovery toward the end of the period.

Economic Profit

The economic profit demonstrates significant volatility throughout the years. Starting with a positive figure of 1,563 million USD in mid-2013, it sharply falls to a negative value of -2,241 million USD by mid-2014. The year 2015 marks a strong rebound with a peak economic profit of 3,379 million USD. Nevertheless, this gain is not sustained, as subsequent years show a downturn, returning to negative profits of -1,388 million USD in 2016, -1,545 million USD in 2017, and further declining to -2,146 million USD in 2018.

Economic Profit Margin

Mirroring the trend in economic profit, the economic profit margin starts positively at 5.69% in mid-2013, then experiences a decline to -7.03% in mid-2014. It recovers notably in mid-2015 to 11.76%, indicating improved profitability relative to revenue. However, the margin again shifts downward, remaining negative at -5.07% in 2016 and showing a slight worsening trend to -7.04% by 2018. This pattern confirms the inconsistent profitability performance of the entity over the period.

Summary

The financial data reveals a pattern of considerable fluctuations in profitability metrics against a backdrop of somewhat volatile adjusted revenues. While revenues experienced a partial recovery after an initial decline, economic profit and its margin displayed irregular movements with a peak in 2015 followed by persistent losses in later years. This suggests challenges in sustaining economic profitability despite recovery in revenue levels, indicating potential issues with cost management or operational efficiency during the latter part of the observed timeframe.