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

Return on Assets (ROA)

The Return on Assets exhibits considerable fluctuations over the observed periods. Initially, there is a decreasing trend from 11.54% at the end of September 2013 to a low of 5.69% by March 2014. Subsequently, a notable increase occurs, peaking at 17.9% in March 2015. This high is followed by a sharp decline to around 5% during late 2015 and mid-2016. From this trough, the ROA gradually rises again, reaching over 8% by the third quarter of 2018, and culminating in a significant peak of 21.06% by the end of 2018.

Financial Leverage

The financial leverage ratio presents a moderate downward trend throughout the period. Starting from slightly above 3.0 in late 2013, it fluctuates within a narrow range before a general decline begins around late 2017. This reduction continues steadily, with the ratio falling from approximately 3.3 in late 2015 to 2.06 by the close of 2018. The decline in leverage may indicate a decrease in the company's reliance on debt financing over time.

Return on Equity (ROE)

The ROE mirrors the volatility seen in ROA but at higher percentage levels, reflecting the impact of leverage. It starts at 35.53% in September 2013, experiences a sharp drop to 18% by March 2014, and then recovers markedly to a peak of over 51% in March 2015. Following this peak, the ROE declines to around 15-16% in late 2015 and early 2016. Subsequently, the metric oscillates around the low 20% range for several quarters. Toward the end of the period, it rises again, reaching 43.36% by December 2018, indicating improved profitability and possibly better capital management.

The financial performance over the observed quarters reveals several notable trends in profitability, efficiency, and leverage metrics.

Net Profit Margin

The net profit margin exhibits considerable fluctuation throughout the period. Initially, it starts relatively high above 20%, declines to a low point near 8% by early 2016, and then experiences moderate recovery, stabilizing around 10-16% in subsequent quarters. The final quarter reports a marked spike to approximately 44.7%, suggesting an exceptional increase in profitability at that time.

Asset Turnover

The asset turnover ratio remains relatively stable, hovering mostly between 0.54 and 0.62. There is a slight increase leading into mid-2014, followed by minor oscillations, but overall efficiency in use of assets to generate revenue does not demonstrate a strong upward or downward trend. By the final quarter, it declines to 0.47, the lowest point recorded, indicating a reduction in asset utilization effectiveness.

Financial Leverage

Financial leverage shows a decreasing trend across the quarters. Initially at around 3.08, the ratio experiences fluctuations but generally decreases to 2.06 by the last quarter. This reduction suggests a conservative movement in the company’s capital structure, potentially lowering reliance on debt financing over time.

Return on Equity (ROE)

ROE follows a volatility pattern similar to net profit margin. It starts strong at above 35%, dips to a trough near 15-18% during early 2016, then steps upward with alternating minor fluctuations around the 20-23% range. The final quarter again shows a significant spike, reaching over 43%, reflecting a surge in profitability and efficiency in generating shareholder returns.

In summary, the company experienced considerable variability in profitability measures, with a notable dip in early 2016 followed by gradual recovery. Asset utilization remained relatively consistent until a decline at the end of the period, while financial leverage steadily decreased, indicating a cautious approach to debt. The spike at the end of the data set in both net profit margin and ROE may signal either an exceptional event or one-off gain affecting financial performance metrics.

Tax Burden Ratio

The tax burden ratio exhibits variability over the observed periods, beginning at 0.78 in late 2013 and experiencing fluctuations with lows near 0.64 to 0.65 during late 2015 and mid-2016. A notable spike occurs at the end of 2017 and into 2018, where the ratio exceeds 1.0, peaking around 1.15 before retreating to 0.92. This suggests periods of changing tax obligations or adjustments affecting net income relative to earnings before taxes.

Interest Burden Ratio

This ratio shows a decreasing trend from 0.88 in late 2013 to a trough around 0.75 through 2016 to mid-2018, followed by an increase to 0.93 by the end of 2018. The decrease indicates improving interest expense conditions relative to earnings before interest and taxes, while the late increase may reflect rising interest costs or reduced operational earnings coverage for interest expenses.

EBIT Margin

The EBIT margin experiences marked volatility during the period, starting at a high 30.9% in September 2013, dropping to a low of 17.35%-18.55% in late 2015 to mid-2016, before stabilizing around 17.5% to 19.6% through 2017 and 2018. A significant outlier appears at the end of 2018, with margin surging to 52.56%, indicating an exceptional operational profitability event or one-time gain during that quarter.

Asset Turnover

Asset turnover remains relatively stable within a narrow range between 0.54 and 0.62 throughout the entire span, showing no significant upward or downward trend. This consistency suggests steady efficiency in utilizing assets to generate revenue.

Financial Leverage

Financial leverage demonstrates a declining trend over the period, starting at 3.08 in late 2013, peaking slightly mid-2014 and late 2015 at around 3.36 and 3.54, respectively, but overall decreasing to 2.06 by the end of 2018. This trend reflects a gradual reduction in reliance on debt financing relative to shareholder equity.

Return on Equity (ROE)

ROE experiences significant fluctuations throughout the quarters, beginning at 35.53% in late 2013, falling sharply to a low of approximately 15.7%-20% during 2015 to 2017, then achieving moderate recovery to the low twenties by mid-2018. A pronounced spike is evident at the end of 2018, with ROE rising sharply to 43.36%, concomitant with the spike in EBIT margin, indicative of a period of substantially enhanced profitability or financial performance.

Overall Financial Performance Insights

The data reveals periods of substantial variability in profitability and operating efficiency metrics, with a general pattern of declining operational margins and returns in the mid-period years, followed by marked improvement toward the end of the timeline. Improvements in tax and interest burdens in the earlier years appear to be offset by diminished EBIT margin and ROE, while the later sharp increases in profitability metrics suggest either operational improvements, one-time gains, or accounting adjustments. Asset turnover remains steady, implying stable asset utilization efficiency, while declining financial leverage indicates a strategic reduction in debt exposure over time.

The financial data reflects several notable trends in the company's profitability and efficiency metrics over the examined quarters.

Net Profit Margin

The net profit margin exhibited significant fluctuations throughout the period. Starting at a relatively high level of 21.3% in September 2013, the margin experienced a downward trend into early 2014, reaching values near 10%. A pronounced spike occurred at the end of 2014 and early 2015, with margins nearing or exceeding 28%, indicating a temporary surge in profitability. Subsequently, the margin decreased substantially, hovering around 10% through most of 2016 and 2017 with a slight increasing tendency. By late 2018, there was a remarkable rise to 44.71%, suggesting an exceptional period of profit efficiency.

Asset Turnover

Asset turnover ratios remained relatively stable, ranging mostly between 0.54 and 0.62 in the first few years. This indicates consistency in the company’s ability to generate sales from its assets. Minor variations showed a slight decline starting mid-2015, maintaining a level near 0.56 through 2017 and 2018, before dipping to 0.47 at the end of 2018. The decline may point to a reduction in asset utilization efficiency in the most recent quarter.

Return on Assets (ROA)

ROA mirrored some of the patterns observed in net profit margin but displayed generally lower and less volatile values. It began around 11.54% in late 2013, dropped significantly to around 5-8% during much of 2014, and surged to peaks near 17-18% during late 2014 through early 2015. Following this peak, ROA diminished to about 5-6% for several quarters before gradually improving to around 7-9% through 2017 and 2018. The end of 2018 showed a considerable increase to 21.06%, indicating a strong improvement in asset profitability aligned with the surge in net profit margin.

Overall, the data indicates periods of volatility in profitability, with a notable peak around late 2014 and early 2015, followed by relative stabilization at lower margins and returns through the middle years. The sharp increase in profitability metrics toward the end of 2018 signals a significant improvement in financial performance, though the simultaneous decrease in asset turnover suggests caution regarding the sustainability of this efficiency. The company’s asset utilization remained fairly consistent for most of the period but slightly weakened in the final quarter.

The analysis of the financial ratios over the observed periods reveals several noteworthy trends and changes.

Tax Burden

The tax burden ratio fluctuates within the range of approximately 0.64 to 1.15. Initially, it remains relatively stable around the mid-0.7 to 0.9 range, with occasional dips below 0.7 observed toward 2015 and 2016. Notably, there is a sharp increase towards the end of 2017 and into 2018, where the ratio exceeds 1.0, peaking at 1.15 before declining to 0.92. A ratio above 1 indicates that tax expenses exceeded pre-tax income, which may reflect complexities in tax accounting or adjustments in those periods.

Interest Burden

The interest burden ratio shows a general downward trend from about 0.88 in late 2013 to a low in the mid-0.7 range by late 2017, with a spike back up to 0.93 by the end of 2018. The steady decline suggests rising interest expenses or decreasing earnings before interest and taxes (EBIT), reducing interest coverage over the majority of the observed timeframe. The late 2018 increase may imply improved interest expense management or reduced debt load at that time.

EBIT Margin

The EBIT margin experiences significant volatility. It starts around 30.9% in late 2013, falls sharply to the mid-teens through 2014, then rebounds notably in 2014 to over 36%, and sustains levels near 37% into mid-2015. This high margin period is followed by another decline stabilizing around 17-19% from 2015 through early 2018. A remarkable jump to 52.56% occurs in the last period, indicating extraordinary profitability or a significant one-time gain during that quarter.

Asset Turnover

The asset turnover ratio remains relatively stable throughout the periods, oscillating narrowly between about 0.47 and 0.62. Minor fluctuations suggest consistent efficiency in asset utilization for revenue generation, with a slight downward movement toward the end of the timeframe.

Return on Assets (ROA)

ROA follows a pattern similar to the EBIT margin but with less volatility. Starting at about 11.54% in late 2013, it declines markedly to near 5% in late 2015 and early 2016, then gradually increases to near 9% by late 2018. The last reported figure surges to 21.06%, reflecting a dramatic improvement in overall asset profitability in that final quarter, mirroring the spike seen in the EBIT margin. This suggests that operational efficiency or net income experienced a significant increase at this time.

Overall, the company’s operational profitability and returns on assets faced periods of instability and recovery, with particularly strong performance spikes toward the end of the period under review. The tax and interest burdens showed variability that likely impacted net profitability, emphasizing the importance of financial and tax management strategies. Asset utilization remained fairly steady, indicating consistent efficiency in employing assets to generate sales.

The quarterly financial data reflects several notable trends and fluctuations across the key profitability and burden ratios over the observed periods.

Tax Burden

The tax burden ratio exhibited considerable variability, initially ranging between 0.73 and 0.88 during the earlier periods. A marked increase appears toward the latter part of the sequence, peaking above 1.0 during the 2017–2018 timeframe, signaling an unusual tax situation where taxes may have exceeded pre-tax profits or other exceptional items impacted this metric. The data concludes with a decline to 0.92, suggesting some normalization.

Interest Burden

This ratio maintained a relatively stable profile, fluctuating mostly between 0.75 and 0.9, indicating consistent interest expense relative to earnings before tax and interest. A slight dip is noticeable around late 2015 to 2018, suggesting a modest increase in interest expenses or shifts in financing structure. The final recorded value shows a significant rise to 0.93, possibly a consequence of changing debt costs or refinancing effects.

EBIT Margin

Operating profitability, as captured by the EBIT margin, demonstrates significant swings throughout the quarters. Early periods show margins ranging from mid-teens to around 38%, with peaks notably concentrated around late 2014 to 2015. Post-2015, margins declined to the high teens and remained relatively flat until an exceptional surge to over 52% in the last quarter reported, indicating an extraordinary event or substantial operational improvement.

Net Profit Margin

Net margin trends parallel those of EBIT margin but at generally lower levels, reflecting typical reductions after tax and interest expenses. Initial fluctuations are pronounced with margins from approximately 8% to almost 30%, highlighting volatile profitability. The margins stabilized somewhat in the mid-teens range from 2016 through most of 2018, finishing with a sharp increase to nearly 45%, again suggesting a significant one-time gain or operational leverage enhancing bottom-line outcomes.

Overall, the financial metrics reveal a company experiencing phases of volatility, particularly around tax and net profitability, with intermittent peaks indicative of either non-recurring items or strategic shifts. The consistent underlying interest burden denotes a steadier financial cost structure, while operating profitability shows resilience with a strong rebound in the final quarters analyzed.