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

Return on Assets (ROA)

The Return on Assets demonstrates significant fluctuations throughout the periods analyzed. Starting at 13.93% in June 2013, ROA dipped to a lower range between approximately 4.6% and 8.3% during the subsequent years, with a notable increase to 21.06% in the last reported period of December 2018. The intermediate quarters show variability with some recovery phases, but overall, ROA appears volatile with a pronounced uptrend toward the end of the timeline.

Financial Leverage

Financial Leverage ratios show an increasing trend from 2.27 in September 2012 to a peak around 3.54 in mid-2016, indicating growing reliance on debt financing over that timeframe. Post-2016, leverage gradually decreases, reaching 2.06 by December 2018. This suggests a deleveraging trend towards the end of the period, potentially reflecting efforts to reduce risk or improve balance sheet strength.

Return on Equity (ROE)

Return on Equity follows a pattern somewhat parallel to ROA but with more volatility and higher values overall. Beginning at 41.75% in June 2013, ROE declined notably to a range between approximately 15.7% and 22.8% during 2015 to 2017, reflecting a contraction in equity profitability. However, a strong rebound occurs towards the end of the period, culminating in a peak of 43.36% in December 2018. This rebound indicates improved equity returns, possibly linked to changes in operational efficiency, capital structure, or both.

Net Profit Margin

The net profit margin displays significant variability over the observed periods. Starting with missing data in the early quarters, it initially appears at 25.64% and subsequently declines to lower levels around 10% in mid-2013. Thereafter, the margin rises to levels near 29% throughout 2014 and early 2015, indicating strong profitability. A notable dip occurs again in 2016, with margins falling below 11%, followed by a gradual recovery through 2017 and 2018, culminating in a sharp increase to 44.71% at the end of 2018. This pattern suggests fluctuating profitability with marked improvements toward the latter period.

Asset Turnover

The asset turnover ratio remains relatively stable across the periods, fluctuating between 0.47 and 0.62. The ratio generally hovers around 0.54 to 0.60, indicating that the company consistently generates slightly more than half a dollar of sales per dollar of assets. Minor declines are observed towards the end of the period, dropping to 0.47 in the final quarter, suggesting a slight reduction in the efficiency of asset use in generating revenue.

Financial Leverage

Financial leverage starts at approximately 2.27 and undergoes a general upward trend, peaking above 3.5 during mid-2016. After this peak, there is a gradual decline in leverage, falling to about 2.06 by the end of 2018. The movement suggests an initial increase in the use of debt relative to equity, followed by a strategic reduction in leverage in later periods, possibly indicating efforts to strengthen the equity base or reduce financial risk.

Return on Equity (ROE)

ROE shows significant fluctuation, initially around 41.75%, then declining steadily to near 18% by mid-2013. From late 2013 through early 2015, ROE rises sharply, reaching peaks above 50%, signaling highly effective equity utilization during this interval. Subsequently, there is a decline through 2016 to around 15-20%, followed by moderate growth to roughly 23% by late 2018. The last quarter reports a notable surge to 43.36%, mirroring the trend in net profit margin. These patterns point to episodic enhancements in profitability and equity efficiency with some volatility likely influenced by operational and financial leverage changes.

Tax Burden

The tax burden ratio exhibits fluctuations over the analyzed quarters. Starting at 0.81 in September 2013, it demonstrates a decreasing trend reaching lows near 0.64-0.65 in December 2015 and March 2016. Subsequently, the ratio shows some recovery, increasing to exceed 1.0 in late 2017, peaking at 1.15 in December 2017 before settling back to 0.92 by the end of 2018. This variability suggests changes in effective tax rates impacting net profitability across periods.

Interest Burden

The interest burden ratio remains relatively stable throughout the periods, generally oscillating between 0.75 and 0.9. It decreases slightly around late 2015 and early 2016 to approximately 0.75-0.76 but rises again toward the end of 2018, culminating at 0.93. This consistency indicates steady interest expense management relative to earnings before interest and taxes.

EBIT Margin

The EBIT margin shows significant variation. It starts at 35.59% in September 2013 but declines sharply to a low of 17.67% in June 2013 before recovering to peak values around 38.16% to 37.48% towards the end of 2014 and early 2015. A notable drop to the range of approximately 17-19% occurs from late 2015 through late 2018. An exceptional spike to 52.56% in December 2018 implies a substantial increase in operating profitability during that quarter, possibly due to extraordinary items or operational improvements.

Asset Turnover

The asset turnover ratio shows modest fluctuations, generally ranging between 0.54 and 0.62. It peaks near 0.62 in early 2014 but trends slightly downward to about 0.47 by the end of 2018. This suggests a subtle decline in how efficiently assets are utilized to generate revenue over time.

Financial Leverage

Financial leverage experiences increased levels from around 2.27 in late 2012, rising steadily to exceed 3.5 between June 2016 and early 2017. Subsequently, it declines gradually to 2.06 by December 2018. This pattern indicates a period of expanded use of debt or equity to finance assets, followed by deleveraging towards the end of the series.

Return on Equity (ROE)

ROE mirrors trends seen in EBIT margin and leverage. After starting near 41.75% in late 2013, it decreases notably to under 20% during 2015 and 2016, then maintains a moderate range of approximately 18-23% through 2018. A significant peak of 51.99% is observed in December 2014, followed by a return to lower levels. The jump to 43.36% in December 2018 aligns with the increased EBIT margin and reduced financial leverage.

The financial data reveals distinct fluctuations in key performance indicators over the examined periods.

Net Profit Margin

Initially, data for the earliest dates is unavailable. Starting from September 30, 2012, the margin exhibited a downward trend from 25.64% to a low near 9.09% by March 31, 2016. Following this, there was a period of relative stability, with values oscillating slightly between approximately 8.46% and 14.68% through December 31, 2018. A significant spike is observed at the final data point, reaching 44.71%, suggesting a notable improvement in profitability during that quarter.

Asset Turnover

This ratio demonstrates modest variability, with values ranging from approximately 0.47 to 0.62. The ratio rose slightly after the earliest reported data, peaking at 0.62 around March 31, 2015, then generally declined gradually, ending at 0.47 by December 31, 2018. The downward trend in asset turnover may reflect less efficient use of assets over time.

Return on Assets (ROA)

ROA values follow a pattern analogous to net profit margin, with an initial decline from 13.93% to a trough near 4.62% around December 31, 2015. Subsequently, there is a mild recovery stabilizing near 8.98% before a sharp increase to 21.06% by the final quarter in 2018. This enhancement suggests improved overall effectiveness in employing asset base to generate earnings toward the end of the period.

In summary, the company experienced periods of declining profitability and asset utilization efficiency early in the dataset, followed by stabilization and eventual strong improvement in profitability indicators at the end. The net profit margin and ROA both show significant positive spikes in the final quarter, which may warrant further investigation to understand underlying causes such as operational improvements or non-recurring gains. Asset turnover's gradual decline points to less intensive use of assets despite profitability gains, indicating a potential shift in business operations or asset management strategy.

The analyzed financial data reveals several trends in the key profitability and efficiency ratios over the observed periods.

Tax Burden

The tax burden ratio, indicating the proportion of earnings retained after tax, shows some volatility across the periods. It started around the mid-0.7s range before improving to peak near 0.88 around 2014-2015. Subsequently, it dipped below 0.7 during 2015-2017 but experienced a sharp increase at the end of 2017 and into 2018, surpassing 1.0, which may suggest an unusual tax event or adjustment impacting after-tax earnings during that timeframe.

Interest Burden

This ratio, reflecting the earnings retained after interest expenses, remains relatively stable with minor declines. Starting slightly below 0.9 in 2013, the ratio gradually trends downward to the mid-0.7 range by 2017, ending with a sharp increment to 0.93 in late 2018. The consistency indicates stable interest costs relative to earnings, with slight improvement at the end potentially linked to debt restructuring or lower interest expenses.

EBIT Margin

The EBIT margin demonstrates significant fluctuations. Initially, it declines from approximately 35.6% in late 2012 to under 18% by mid-2013. It then rebounds strongly, peaking above 38% during late 2014 and early 2015. Following this, the margin contracts again, maintaining a range near 17-19% through 2016-2018, before a notable spike to over 52% at the final period. This pattern may reflect changes in operational efficiency, cost control, or shifts in revenue mix.

Asset Turnover

Asset turnover ratios show slight variation but generally remain within a narrow band around 0.54 to 0.62. The ratio peaks near 0.62 in early 2014, then modestly declines to about 0.54 by the end of 2018, suggesting a marginal decrease in revenue generated per dollar of assets over time.

Return on Assets (ROA)

ROA follows a pattern similar to that of EBIT margin and tax burden, starting at approximately 13.9% in late 2012, then dropping to as low as about 5% during the mid-2010s. It experiences periods of recovery with peaks near 17-18% in 2014-2015, followed by stable lower levels around 5-8% throughout 2016-2018. The final recorded value surges notably above 21%, implying a significant improvement in overall asset profitability at the end of the observed timeline.

Overall, the data indicates periods of operational and profitability volatility, with interim recoveries and subsequent declines in key margins and returns. The late 2017 and 2018 intervals show notable improvements in tax burden, EBIT margin, interest burden, and ROA, possibly reflecting favorable financial events or operational changes influencing profitability and efficiency.

Tax Burden Ratio

The tax burden ratio exhibits a fluctuating trend over the analyzed periods. Initially observed around 0.81 in September 2013, it declines gradually reaching a low of approximately 0.64 by December 2015. Following this trough, the ratio stabilizes near the 0.70 level until around mid-2017. Subsequently, there is a notable increase surpassing 1.0 during the last three quarters, culminating at approximately 0.92 by the end of 2018. This pattern suggests variations in tax expense relative to pre-tax income, with a notable spike in the later periods.

Interest Burden Ratio

The interest burden ratio indicates a generally stable pattern with a slight downward tendency. Starting near 0.89 in September 2013, it declines modestly to about 0.75 between late 2017 and mid-2018. However, the final quarter shows an uptick reaching approximately 0.93. The relatively stable ratio near 0.75 to 0.90 suggests consistent interest expense relative to earnings before interest and taxes, with minor improvements in the final period.

EBIT Margin

The EBIT margin demonstrates significant variability throughout the periods. After peaking at around 36% to 38% during late 2013 and early 2015, it experiences a sharp decline to levels between 17% to 19% from mid-2015 through to 2018. Most notably, the final quarter of 2018 shows a remarkable spike to 52.56%, a considerable outlier compared to prior observations. This trend indicates fluctuating operating profitability with a significant improvement in the last reported quarter.

Net Profit Margin

Net profit margin follows a pattern broadly similar to the EBIT margin, though with more pronounced declines and partial recoveries. The margin peaks near 28% to 29% between late 2013 and early 2015, then falls sharply to around 9% to 10% through 2015 and 2016. Subsequently, there is a gradual upward movement toward approximately 14% to 16% from mid-2017 up to late 2018. The last quarter exhibits a marked increase to 44.71%, indicating a strong profitability improvement after a period of relatively low margins.