Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Twenty-First Century Fox Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
The financial ratios demonstrate notable fluctuations and trends within the company's capital structure and solvency over the reported periods.
- Debt to equity
- This ratio shows some variability, initially increasing from around 1.01 to peak near 1.44 between 2013 and 2016, indicating a rising reliance on debt relative to shareholders' equity. Afterward, a consistent downward trend is observed, falling to 0.6 by the end of 2018, suggesting a strategic reduction in leverage or an increase in equity base.
- Debt to capital
- The ratio follows a similar pattern, growing from approximately 0.50 to nearly 0.59 till mid-2016, then progressively declining to 0.38 by late 2018. This signals a shift towards a more balanced or equity-oriented capital structure over time.
- Debt to assets
- The debt relative to total assets ratio rises gradually from 0.33 to around 0.41 between 2013 and 2016, indicating increased debt usage against assets. Subsequently, there is a steady decrease to 0.29 in late 2018, reflecting lower financial risk and possibly increased asset base or debt reduction efforts.
- Financial leverage
- This metric peaks at about 3.54 around mid-2016, suggesting higher total asset usage per unit of equity during that period. Following this peak, a declining trend ensues, dropping to 2.06 by the fourth quarter of 2018. The reduction indicates less aggressive leveraging and improved equity cushioning relative to total assets.
- Interest coverage
- The ratio shows considerable volatility. It starts strong at 7.7 in late 2013, dips to levels near 4.3-4.8 through 2015 to 2017, reflecting tighter earnings available to cover interest expenses. A pronounced improvement occurs by the end of 2018, with interest coverage rising sharply to 13.7, suggesting a significant enhancement in earnings relative to interest obligations during that period.
Overall, the data suggests that the company initially increased leverage up to 2016 but has since pursued deleveraging strategies through reduced debt levels or enhanced equity, improving the capital structure and solvency position by the end of 2018. The marked improvement in interest coverage at the latest date implies stronger operational performance or reduced interest burdens, enhancing financial stability.
Debt Ratios
Coverage Ratios
Debt to Equity
Twenty-First Century Fox Inc., debt to equity calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current borrowings | 887) | 872) | 1,054) | 1,538) | 631) | 707) | 457) | 107) | 80) | 454) | 427) | 475) | 486) | 244) | 244) | 227) | 227) | 814) | 799) | 797) | 884) | 140) | |||||||
| Non-current borrowings | 18,321) | 18,379) | 18,469) | 18,459) | 19,163) | 19,142) | 19,456) | 19,789) | 19,813) | 19,034) | 19,298) | 19,270) | 19,251) | 18,767) | 18,795) | 18,865) | 18,901) | 19,395) | 18,259) | 18,257) | 16,588) | 17,333) | |||||||
| Total debt | 19,208) | 19,251) | 19,523) | 19,997) | 19,794) | 19,849) | 19,913) | 19,896) | 19,893) | 19,488) | 19,725) | 19,745) | 19,737) | 19,011) | 19,039) | 19,092) | 19,128) | 20,209) | 19,058) | 19,054) | 17,472) | 17,473) | |||||||
| Total Twenty-First Century Fox, Inc. stockholders’ equity | 32,005) | 20,698) | 19,564) | 18,971) | 18,389) | 16,304) | 15,722) | 15,017) | 14,340) | 13,807) | 13,661) | 14,471) | 14,504) | 15,281) | 17,220) | 17,989) | 19,813) | 16,265) | 17,418) | 17,463) | 17,649) | 17,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.60 | 0.93 | 1.00 | 1.05 | 1.08 | 1.22 | 1.27 | 1.32 | 1.39 | 1.41 | 1.44 | 1.36 | 1.36 | 1.24 | 1.11 | 1.06 | 0.97 | 1.24 | 1.09 | 1.09 | 0.99 | 1.01 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
1 Q2 2019 Calculation
Debt to equity = Total debt ÷ Total Twenty-First Century Fox, Inc. stockholders’ equity
= 19,208 ÷ 32,005 = 0.60
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from September 2013 through June 2015, with minor fluctuations generally hovering around the 19,000 to 20,000 million US dollar range. After this period, the debt level exhibited a gradual decline, particularly noticeable from late 2017 onwards, decreasing from approximately 19,997 million US dollars in September 2018 to 19,208 million US dollars by the end of December 2018. This trend reflects a modest but consistent reduction in debt over the latter part of the observed timeframe.
- Total Stockholders’ Equity
- The stockholders’ equity showed some volatility over the examined quarters. Starting at 17,224 million US dollars in September 2013, the equity value decreased to a low point of approximately 13,661 million in June 2016, marking a considerable drop. Following this downturn, there was a marked recovery and growth in equity from late 2016 through 2018, culminating in a significant rise to 32,005 million US dollars by December 2018. This sharp increase in stockholders’ equity toward the end of the period suggests a positive shift in shareholders’ net worth.
- Debt to Equity Ratio
- The debt to equity ratio demonstrated variability corresponding with the trends observed in both debt and equity figures. Initially, the ratio hovered near parity around 1.0 from 2013 through mid-2014, then spiked to a peak of 1.44 in June 2016, indicating higher leverage during that time. From this peak, the ratio gradually declined in a steady manner, dropping below 1.0 starting mid-2018 and reaching a low of 0.6 by the end of 2018. This decrease reflects a reduction in leverage, driven primarily by the growth in equity coupled with a slight reduction in total debt.
- Overall Trends and Insights
- Throughout the period analyzed, the company managed to maintain a relatively consistent level of debt while experiencing more pronounced fluctuations in equity. The initial dip in equity and corresponding increase in leverage ratio up to mid-2016 may indicate periods of operational or market challenges. However, the subsequent recovery and substantial increase in equity, alongside the diminution of leverage, suggest improved financial stability and a strengthening balance sheet toward the end of 2018. These movements could be indicative of strategic financial management, possibly including equity issuances, retained earnings growth, or asset revaluation gaining positive traction in the latter phases of the timeline.
Debt to Capital
Twenty-First Century Fox Inc., debt to capital calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current borrowings | 887) | 872) | 1,054) | 1,538) | 631) | 707) | 457) | 107) | 80) | 454) | 427) | 475) | 486) | 244) | 244) | 227) | 227) | 814) | 799) | 797) | 884) | 140) | |||||||
| Non-current borrowings | 18,321) | 18,379) | 18,469) | 18,459) | 19,163) | 19,142) | 19,456) | 19,789) | 19,813) | 19,034) | 19,298) | 19,270) | 19,251) | 18,767) | 18,795) | 18,865) | 18,901) | 19,395) | 18,259) | 18,257) | 16,588) | 17,333) | |||||||
| Total debt | 19,208) | 19,251) | 19,523) | 19,997) | 19,794) | 19,849) | 19,913) | 19,896) | 19,893) | 19,488) | 19,725) | 19,745) | 19,737) | 19,011) | 19,039) | 19,092) | 19,128) | 20,209) | 19,058) | 19,054) | 17,472) | 17,473) | |||||||
| Total Twenty-First Century Fox, Inc. stockholders’ equity | 32,005) | 20,698) | 19,564) | 18,971) | 18,389) | 16,304) | 15,722) | 15,017) | 14,340) | 13,807) | 13,661) | 14,471) | 14,504) | 15,281) | 17,220) | 17,989) | 19,813) | 16,265) | 17,418) | 17,463) | 17,649) | 17,224) | |||||||
| Total capital | 51,213) | 39,949) | 39,087) | 38,968) | 38,183) | 36,153) | 35,635) | 34,913) | 34,233) | 33,295) | 33,386) | 34,216) | 34,241) | 34,292) | 36,259) | 37,081) | 38,941) | 36,474) | 36,476) | 36,517) | 35,121) | 34,697) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.38 | 0.48 | 0.50 | 0.51 | 0.52 | 0.55 | 0.56 | 0.57 | 0.58 | 0.59 | 0.59 | 0.58 | 0.58 | 0.55 | 0.53 | 0.51 | 0.49 | 0.55 | 0.52 | 0.52 | 0.50 | 0.50 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
1 Q2 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 19,208 ÷ 51,213 = 0.38
2 Click competitor name to see calculations.
- Total Debt
- The total debt level remained relatively stable over the observed periods, fluctuating mostly within a narrow range between approximately 17,400 and 20,000 million USD. Initially, the debt was close to 17,473 million USD, rising to a peak of around 19,997 million USD during the third quarter of 2018 before decreasing slightly towards the end of the period to about 19,208 million USD.
- Total Capital
- Total capital showed a general upward trend over the timeframe, beginning at approximately 34,697 million USD and increasing substantially to 51,213 million USD by the end of 2018. This indicates a significant growth in the company’s capital base, notably with a marked jump in total capital recorded in the final quarter, suggesting possible capital injections, asset revaluations, or other factors leading to increased capitalization.
- Debt to Capital Ratio
- The debt to capital ratio exhibited variability with an overall downward trend. Initially fluctuating around 0.50 to 0.55, it reached peaks close to 0.59 in 2015 and 2016, implying a higher proportion of debt relative to capital during these periods. From late 2016 onward, the ratio steadily declined, dropping to 0.38 by the end of 2018. This decrease reflects a relative reduction in debt levels compared to capital growth, indicating an improving capital structure and potentially a reduced financial risk profile.
- Summary
- Overall, the data reveals a stable total debt level alongside a significant increase in total capital, leading to a lower debt to capital ratio over time. These patterns suggest an improving leverage position, with the company potentially strengthening its balance sheet by expanding its capital base while maintaining or slightly reducing its debt obligations.
Debt to Assets
Twenty-First Century Fox Inc., debt to assets calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current borrowings | 887) | 872) | 1,054) | 1,538) | 631) | 707) | 457) | 107) | 80) | 454) | 427) | 475) | 486) | 244) | 244) | 227) | 227) | 814) | 799) | 797) | 884) | 140) | |||||||
| Non-current borrowings | 18,321) | 18,379) | 18,469) | 18,459) | 19,163) | 19,142) | 19,456) | 19,789) | 19,813) | 19,034) | 19,298) | 19,270) | 19,251) | 18,767) | 18,795) | 18,865) | 18,901) | 19,395) | 18,259) | 18,257) | 16,588) | 17,333) | |||||||
| Total debt | 19,208) | 19,251) | 19,523) | 19,997) | 19,794) | 19,849) | 19,913) | 19,896) | 19,893) | 19,488) | 19,725) | 19,745) | 19,737) | 19,011) | 19,039) | 19,092) | 19,128) | 20,209) | 19,058) | 19,054) | 17,472) | 17,473) | |||||||
| Total assets | 65,886) | 54,512) | 53,831) | 53,978) | 52,858) | 52,028) | 50,724) | 50,684) | 49,207) | 48,626) | 48,365) | 49,248) | 48,096) | 47,997) | 50,051) | 51,492) | 52,652) | 54,711) | 54,793) | 55,293) | 53,286) | 53,025) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.29 | 0.35 | 0.36 | 0.37 | 0.37 | 0.38 | 0.39 | 0.39 | 0.40 | 0.40 | 0.41 | 0.40 | 0.41 | 0.40 | 0.38 | 0.37 | 0.36 | 0.37 | 0.35 | 0.34 | 0.33 | 0.33 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
1 Q2 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 19,208 ÷ 65,886 = 0.29
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends in the company's leverage and asset composition over the observed periods.
- Total Debt
- The total debt remained relatively stable throughout the periods, fluctuating slightly around the range of approximately $19 billion to $20 billion. A minor increase is observed from late 2014 through 2017, peaking near $20 billion. However, a decreasing trend begins after 2017, with total debt declining gradually to about $19.2 billion by the end of 2018.
- Total Assets
- Total assets displayed a general downward trend from late 2013 to the end of 2015, dropping from over $53 billion to under $48 billion. Beginning in 2016, total assets begin a recovery trend, steadily increasing through 2017 and 2018. Notably, there is a significant jump in total assets by the last recorded period in 2018, reaching close to $66 billion. This sharp increase contrasts with the relatively stable asset levels seen in prior quarters.
- Debt to Assets Ratio
- The debt-to-assets ratio shows a rising trend from 0.33 in late 2013 up to a peak near 0.41 by late 2015 and early 2016, indicating increased leverage relative to the asset base during this timeframe. After this peak, the ratio gradually decreases through 2017 and 2018, falling to 0.29 by the end of 2018. The decline in this ratio is attributable both to the reduction in total debt and the significant rise in total assets toward the end of the period.
Overall, the company maintained a steady level of total debt for much of the observed period but faced fluctuations in its total assets, initially declining and then recovering with a notable surge at the end. The leverage ratio, as evidenced by the debt to assets metric, peaked mid-period and was subsequently reduced toward the final periods analyzed. This pattern suggests a strategic adjustment in capital structure, balancing debt levels against growing asset value, resulting in enhanced financial stability by the end of the timeline.
Financial Leverage
Twenty-First Century Fox Inc., financial leverage calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 65,886) | 54,512) | 53,831) | 53,978) | 52,858) | 52,028) | 50,724) | 50,684) | 49,207) | 48,626) | 48,365) | 49,248) | 48,096) | 47,997) | 50,051) | 51,492) | 52,652) | 54,711) | 54,793) | 55,293) | 53,286) | 53,025) | |||||||
| Total Twenty-First Century Fox, Inc. stockholders’ equity | 32,005) | 20,698) | 19,564) | 18,971) | 18,389) | 16,304) | 15,722) | 15,017) | 14,340) | 13,807) | 13,661) | 14,471) | 14,504) | 15,281) | 17,220) | 17,989) | 19,813) | 16,265) | 17,418) | 17,463) | 17,649) | 17,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 2.06 | 2.63 | 2.75 | 2.85 | 2.87 | 3.19 | 3.23 | 3.38 | 3.43 | 3.52 | 3.54 | 3.40 | 3.32 | 3.14 | 2.91 | 2.86 | 2.66 | 3.36 | 3.15 | 3.17 | 3.02 | 3.08 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Alphabet Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Meta Platforms Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Trade Desk Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walt Disney Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
1 Q2 2019 Calculation
Financial leverage = Total assets ÷ Total Twenty-First Century Fox, Inc. stockholders’ equity
= 65,886 ÷ 32,005 = 2.06
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the observed periods.
- Total Assets
-
The total assets exhibited a generally fluctuating but slightly declining trend from September 2013 through December 2018. Beginning at approximately $53 billion, assets decreased with some variability until reaching a low around September 2018, before rising sharply by the end of the reporting period in December 2018 to nearly $66 billion. This final increase represents a significant change compared to the prior downward movement.
- Total Stockholders’ Equity
-
Stockholders’ equity showed moderate volatility throughout the timeframe. It started near $17.2 billion, maintained a range with some decreases and recoveries over succeeding quarters, and then marked a notable increase towards the end of the dataset. By December 2018, the equity value reached approximately $32 billion, illustrating a substantial improvement in overall equity position relative to earlier periods, particularly from mid-2017 onward where a consistent upward trend is visible.
- Financial Leverage (Ratio)
-
Financial leverage ratios indicated a gradual reduction over the course of the reported periods. Initially above 3.0, the ratio experienced fluctuations but trended downward, descending to around 2.06 by December 2018. This decrease suggests a reduction in leverage, reflecting either growth in equity relative to debt or a lowering of liabilities, contributing to a potentially stronger capitalization and less financial risk within the company’s structure over time.
Overall, the data suggest a strengthening financial position towards the end of the period, highlighted by a significant increase in both total assets and stockholders’ equity, combined with a declining financial leverage ratio. This combination implies improved balance sheet resilience and potentially enhanced capacity for financial flexibility or investment activity going forward.
Interest Coverage
Twenty-First Century Fox Inc., interest coverage calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Twenty-First Century Fox, Inc. stockholders | 10,815) | 1,285) | 920) | 858) | 1,831) | 855) | 476) | 799) | 856) | 821) | 567) | 841) | 672) | 675) | 87) | 975) | 6,207) | 1,037) | 999) | 1,053) | 1,207) | 1,255) | |||||||
| Add: Net income attributable to noncontrolling interest | 92) | 66) | 63) | 85) | 85) | 65) | 56) | 71) | 80) | 67) | 39) | 84) | 76) | 62) | 31) | 67) | 77) | 56) | 88) | 20) | 16) | 8) | |||||||
| Less: Income (loss) from discontinued operations, net of tax | (17) | (7) | (5) | (18) | (5) | 16) | (25) | (12) | (1) | (6) | —) | (3) | (2) | (3) | (29) | (15) | (16) | (7) | 33) | (16) | 225) | 487) | |||||||
| Add: Income tax expense | 630) | 126) | 93) | 370) | (1,218) | 391) | 258) | 370) | 448) | 343) | (60) | 463) | 414) | 313) | 93) | 458) | 189) | 503) | 343) | 269) | 360) | 300) | |||||||
| Add: Interest expense, net | 294) | 300) | 312) | 311) | 312) | 313) | 310) | 310) | 299) | 300) | 296) | 295) | 298) | 295) | 291) | 292) | 310) | 305) | 291) | 284) | 274) | 272) | |||||||
| Earnings before interest and tax (EBIT) | 11,848) | 1,784) | 1,393) | 1,642) | 1,015) | 1,608) | 1,125) | 1,562) | 1,684) | 1,537) | 842) | 1,686) | 1,462) | 1,348) | 531) | 1,807) | 6,799) | 1,908) | 1,688) | 1,642) | 1,632) | 1,348) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 13.70 | 4.72 | 4.53 | 4.33 | 4.27 | 4.85 | 4.85 | 4.67 | 4.83 | 4.65 | 4.51 | 4.26 | 4.38 | 8.83 | 9.22 | 10.19 | 10.12 | 5.95 | 5.63 | 5.66 | 7.49 | 7.70 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Comcast Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Netflix Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-K (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-K (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-K (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-Q (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-K (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-Q (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-K (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-Q (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30).
1 Q2 2019 Calculation
Interest coverage
= (EBITQ2 2019
+ EBITQ1 2019
+ EBITQ4 2018
+ EBITQ3 2018)
÷ (Interest expenseQ2 2019
+ Interest expenseQ1 2019
+ Interest expenseQ4 2018
+ Interest expenseQ3 2018)
= (11,848 + 1,784 + 1,393 + 1,642)
÷ (294 + 300 + 312 + 311)
= 13.70
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and trends over the examined periods for key profitability and interest-related metrics.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures demonstrate variability with periods of both growth and decline. Initially, there is a general upward trend reaching a peak in December 2014, driven by a significant one-time increase. Following this peak, EBIT experiences a sharp decline and remains relatively unstable with intermittent recoveries. The data from 2015 to mid-2017 shows moderate earnings with some quarters recording declines notably around mid-2015 and mid-2017. From late 2017 to the end of 2018, there is a resurgence in EBIT, culminating in a substantial increase in the final quarter of 2018, indicating a strong recovery phase.
- Interest Expense, Net
- Interest expenses follow a relatively steady and gradual increase across the periods, moving from 272 million US dollars in September 2013 to around 300 million US dollars by late 2018. There are minor fluctuations, but no significant deviations are observed, suggesting stable but slightly growing financial obligations related to interest.
- Interest Coverage Ratio
- The interest coverage ratio shows varied performance, initially strong at 7.7 and maintaining moderate to high levels through early 2014. This ratio peaks notably in December 2014 and March 2015, corresponding to the high EBIT levels during those periods. However, a marked decrease is evident in late 2015 with ratios dropping towards the 4.3-4.7 range for multiple quarters, indicating reduced capacity to cover interest expenses comfortably. By the end of 2018, the interest coverage ratio significantly improves to 13.7, reflecting a strong enhancement in the company’s ability to meet interest obligations, likely driven by the substantial increase in EBIT during this time.
Overall, the data indicates periods of strong profitability interspersed with quarters of subdued earnings but with a consistent rise in interest expenses. The interest coverage ratio suggests varying levels of financial health concerning debt servicing capability, with a positive trend towards improved solvency in the most recent period analyzed.