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

Return on Assets (ROA)

The ROA demonstrates notable variability over the examined periods. Starting at 13.93% in mid-2013, it experienced a decline to 8.24% in 2014. A significant increase followed in 2015, reaching the highest value of 16.6%. However, this peak was not sustained, as ROA sharply dropped to 5.7% in 2016 and remained relatively stable at 5.82% in 2017. In 2018, a moderate recovery is observed with ROA increasing to 8.29%. This pattern indicates fluctuating efficiency in asset utilization to generate earnings over the years.

Financial Leverage

The financial leverage ratio showed moderate fluctuation throughout the period. It began at a ratio of 3 in 2013 and slightly increased to 3.15 in 2014, suggesting a modest rise in the use of debt relative to equity. The ratio then decreased to 2.91 in 2015, indicating a reduction in leverage. A peak was observed in 2016 at 3.54, marking the highest leverage point, followed by a general downward trend to 3.23 in 2017 and further decline to 2.75 in 2018. This trend reflects cautious management of debt levels after 2016, possibly to reduce financial risk.

Return on Equity (ROE)

ROE exhibited significant volatility over the analyzed timeframe. It started at a high level of 41.75% in 2013, then experienced a steep drop to 25.92% in 2014. A pronounced surge occurred in 2015, achieving the highest recorded ROE of 48.23%. This was followed by a sharp decline to 20.17% in 2016 and a further slight decrease to 18.78% in 2017. The metric showed a slight rebound to 22.82% in 2018. Such fluctuations indicate varying success in generating shareholder returns, potentially influenced by operational performance and leverage changes.

The financial data reveals several notable trends in the company's profitability, efficiency, leverage, and overall return during the analyzed period from 2013 to 2018.

Net Profit Margin

The net profit margin exhibited considerable volatility across the years. It started at a relatively high level of 25.64% in 2013, declined sharply to 14.17% in 2014, rebounded markedly to 28.65% in 2015, and then dropped again to levels around 10% in 2016 and 2017 before recovering slightly to 14.68% in 2018. This pattern suggests fluctuating profitability relative to sales, indicating variability in either cost control or pricing power over the period.

Asset Turnover

The asset turnover ratio remained relatively stable throughout the period, fluctuating narrowly between 0.54 and 0.58. This indicates consistent efficiency in utilizing assets to generate revenue, with no significant improvement or deterioration in asset usage efficiency over these years.

Financial Leverage

The financial leverage ratio showed some variability, beginning at 3.00 in 2013, increasing to a peak of 3.54 in 2016, then gradually declining to 2.75 by 2018. This trend suggests the company initially increased its use of debt financing or other liabilities relative to equity but began deleveraging towards the end of the period, which could reflect efforts to reduce risk or strengthen the capital structure.

Return on Equity (ROE)

ROE followed a pattern somewhat aligned with the net profit margin, beginning high at 41.75% in 2013, declining substantially to 25.92% in 2014, spiking dramatically to 48.23% in 2015, then falling again to lower levels near 20% during 2016 and 2017 before edging up to 22.82% in 2018. This fluctuation suggests that shareholder returns were influenced heavily by profitability swings, as well as changes in leverage and asset efficiency.

Overall, the financial data shows a company experiencing significant fluctuations in profitability and returns to equity holders, while maintaining stability in operational efficiency as measured by asset turnover. The changing financial leverage indicates a varying approach to capital structure management across the reported years, potentially impacting overall risk and return profiles.

Tax Burden

The Tax Burden ratio displayed fluctuations over the analyzed period, beginning at 0.81 in 2013, then declining gradually to 0.68 by 2017 before a significant increase to 1.09 in 2018. This suggests variable tax efficiency, with 2018 reflecting an unusual tax advantage or adjustment.

Interest Burden

This ratio exhibited a declining trend from 0.89 in 2013 to 0.77 in 2018, indicating an improvement in the company’s ability to cover interest expenses from operating earnings, enhancing financial stability regarding debt servicing.

EBIT Margin

The EBIT Margin showed considerable volatility, starting at 35.59% in 2013, dipping sharply to a low of 18.55% in 2016, and remaining below 20% through 2018. This decline signals reduced operating profitability, possibly due to increased costs or pricing pressures.

Asset Turnover

Asset Turnover ratios remained relatively stable, starting at 0.54 in 2013 and holding steady around 0.56 from 2015 onwards. This stability points to consistent efficiency in utilizing assets to generate revenue.

Financial Leverage

Financial Leverage fluctuated between 2.75 and 3.54, peaking in 2016 and then declining towards 2018. This indicates varying levels of debt relative to equity, with a tendency towards reducing leverage in the later years, potentially indicating a focus on risk mitigation.

Return on Equity (ROE)

ROE experienced significant volatility, with a high of 48.23% in 2015 and a low of 18.78% in 2017. Despite the decrease, ROE recovered modestly to 22.82% in 2018. These fluctuations reflect changes in profitability, operational efficiency, and financial structure over the period.

Net Profit Margin

The net profit margin demonstrates considerable volatility over the six-year period. It starts at a relatively high level of 25.64% in 2013, declines sharply to 14.17% in 2014, surges again to 28.65% in 2015, but then experiences another notable decline to around 10% in 2016 and 2017. There is a moderate recovery in 2018, with the margin increasing to 14.68%. Overall, the trend reveals significant fluctuations rather than a consistent pattern of growth or decline.

Asset Turnover

The asset turnover ratio remains relatively stable throughout the observed period. It begins at 0.54 in 2013 and increases slightly to 0.58 in 2014 and 2015, indicating a marginal improvement in the efficiency of asset utilization. From 2016 to 2018, the ratio stabilizes at 0.56, suggesting a consistent level of sales generated per unit of assets without considerable variation.

Return on Assets (ROA)

Return on assets exhibits a pattern similar to the net profit margin, with marked fluctuations across the years. Starting at 13.93% in 2013, it declines sharply to 8.24% in 2014, rebounds to 16.6% in 2015, but then falls to considerably lower levels in 2016 and 2017, dropping to around 5.7% and 5.82%, respectively. In 2018, the ROA shows a rebound to 8.29%. These variations suggest that asset profitability faced challenges in the mid-period but showed signs of partial recovery towards the end of the timeframe.

Tax Burden

The tax burden ratio exhibited fluctuations over the analyzed periods. It started at 0.81 in 2013 and decreased to 0.68 by 2017, indicating a gradual reduction in the tax expense relative to pre-tax earnings. However, there was a notable increase in 2018, with the ratio rising sharply to 1.09, suggesting a significant change in tax expense or adjustments affecting the period.

Interest Burden

This ratio demonstrated a general decline from 0.89 in 2013 to 0.77 in 2018, with a slight increase observed in 2017 at 0.78. The trend indicates a moderate reduction in interest expenses relative to EBIT, potentially reflecting improved interest cost management or changes in debt levels.

EBIT Margin

The EBIT margin experienced considerable variability, with a high margin of 37.08% in 2015 and a low of 17.59% in 2018. The margin diminished significantly after 2015, indicating a decrease in operating profitability. The margin in 2013 was relatively strong (35.59%) but declined sharply the following year and did not recover to the earlier peak levels.

Asset Turnover

Asset turnover remained relatively stable across the years, with values consistently hovering around 0.54 to 0.58. This stability suggests that the company maintained a consistent efficiency in generating sales from its assets without significant improvement or deterioration during the period.

Return on Assets (ROA)

ROA showed considerable fluctuation, peaking at 16.6% in 2015, then declining sharply to below 6% in 2016 and 2017, before recovering to 8.29% in 2018. The trend reflects the combined impact of operating profitability, asset utilization, and cost management. The strong ROA in 2015 aligns with the peak EBIT margin that year, while the subsequent declines correspond to weaker profitability metrics.

Tax Burden

The tax burden ratio exhibits variability over the period analyzed. Initially, it decreased from 0.81 in 2013 to a low of 0.68 in 2017, indicating a reduction in the proportion of income paid as taxes. However, a significant increase to 1.09 in 2018 is observed, suggesting an unusual or exceptional tax event that year, resulting in tax payments exceeding pre-tax income.

Interest Burden

The interest burden ratio shows a gradual decline from 0.89 in 2013 to 0.77 in 2018, with minor fluctuations. This downward trend indicates an improvement in the company’s ability to manage interest expenses relative to earnings before interest, implying more efficient financing costs or reduced debt impact over the years.

EBIT Margin

The EBIT margin demonstrates significant volatility during the timeframe. It decreased from 35.59% in 2013 to 21.67% in 2014, then surged to 37.08% in 2015, followed by a sharp decline to 18.55% in 2016. The margin stabilized somewhat around 18% to 19.6% in 2017 and 2018, albeit at a lower level compared to initial years, indicating fluctuating operating profitability and potential variability in operating costs or revenue quality.

Net Profit Margin

The net profit margin follows a pattern of instability and a general downward shift from 25.64% in 2013 to 10.36% in 2017, reflecting reduced overall profitability after all expenses and taxes. A noticeable recovery appears in 2018, reaching 14.68%, which may suggest improved cost control, tax structure changes, or other income adjustments affecting net income positively.