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

The liquidity position of Twenty-First Century Fox Inc. between 2013 and 2018 demonstrates a generally positive trajectory, characterized by a consistent ability to cover short-term obligations. A notable peak in liquidity occurred in 2015 across all measured metrics, followed by a correction and a subsequent recovery trend through 2018.

Current Ratio

The current ratio remained well above the 1.0 threshold throughout the observed period, starting at 1.85 in 2013 and concluding at 2.35 in 2018. Despite a minor decline in 2014 and a moderate dip in 2016, the ratio experienced an overall increase, indicating an improving capacity to meet current liabilities with current assets.

Quick Ratio

The quick ratio followed a pattern closely aligned with the current ratio, rising from 1.44 in 2013 to 1.79 in 2018. The peak value of 1.97 in 2015 suggests a period of exceptionally high immediate liquidity. The relatively narrow margin between the current and quick ratios indicates that inventory does not constitute a significant portion of the company's current asset base.

Cash Ratio

The cash ratio exhibited the highest volatility of the three metrics. After a decline to 0.61 in 2014, it surged to 1.16 in 2015, signifying that cash and cash equivalents alone were sufficient to cover all current liabilities. Following a sharp decrease to 0.63 in 2016, a steady upward trend resumed, ending at 0.92 in 2018.

Overall, the analysis indicates a robust liquidity profile. The consistent growth in these ratios from 2016 onward suggests a strengthening short-term financial position and a reduced risk of liquidity distress.

The liquidity position of the entity shows a consistent ability to meet short-term obligations, characterized by a current ratio that remained well above 1.0 throughout the six-year period from 2013 to 2018.

Current Assets Trends

Current assets exhibited a fluctuating but overall upward trajectory, starting at 15,567 million USD in 2013 and reaching a peak of 19,333 million USD by 2018. A notable decline occurred in 2016, where assets dropped to 14,949 million USD, before rebounding strongly in the subsequent two years.

Current Liabilities Trends

Current liabilities remained relatively stable, oscillating between a high of 8,856 million USD in 2014 and a low of 7,068 million USD in 2016. The stability of these obligations provided a consistent baseline against which asset fluctuations impacted overall liquidity.

Current Ratio Analysis

The current ratio reached its lowest point of 1.74 in 2014 before increasing sharply to 2.39 in 2015. This improvement was driven by a simultaneous increase in current assets and a reduction in current liabilities. From 2016 to 2018, the ratio stabilized at high levels, ending the period at 2.35, which indicates a robust liquidity buffer and a diminished risk of short-term insolvency.

An evaluation of the liquidity position from June 30, 2013, to June 30, 2018, indicates a consistently strong ability to meet short-term obligations using liquid assets. The quick ratio remained above 1.0 throughout the entire period, signifying that the company possessed sufficient highly liquid assets to cover its current liabilities without relying on the sale of inventory.

Quick Assets Trends

Total quick assets exhibited volatility over the six-year period, starting at 12,118 million US dollars in 2013 and reaching a peak of 14,742 million US dollars by 2018. A significant contraction was observed in 2016, where assets fell to 10,682 million US dollars, before recovering steadily over the subsequent two fiscal years.

Current Liabilities Management

Current liabilities fluctuated, peaking at 8,856 million US dollars in 2014 before declining to a low of 7,068 million US dollars in 2016. Although liabilities increased to 8,244 million US dollars by 2018, the overall growth in quick assets during the latter part of the period outpaced the growth in short-term obligations.

Quick Ratio Analysis

The quick ratio experienced a decline from 1.44 in 2013 to a period low of 1.34 in 2014. A sharp increase followed in 2015, with the ratio peaking at 1.97, driven by a simultaneous increase in liquid assets and a reduction in current liabilities. After a correction to 1.51 in 2016, the ratio demonstrated a steady upward trend, closing at 1.79 in 2018, which suggests an improved liquidity buffer toward the end of the analyzed timeframe.

The analysis of liquidity from 2013 to 2018 reveals significant volatility in the cash position relative to current obligations. The cash ratio fluctuated between a minimum of 0.61 and a maximum of 1.16, indicating a variable capacity to cover short-term liabilities using only the most liquid assets.

Cash Asset Trends

Total cash assets demonstrated substantial variance over the period. After a decline from 6,659 million USD in 2013 to 5,415 million USD in 2014, assets peaked at 8,428 million USD in 2015. A sharp contraction occurred in 2016, with assets falling to 4,424 million USD, followed by a recovery to 7,622 million USD by June 30, 2018.

Current Liabilities Behavior

Current liabilities remained relatively stable compared to the volatility of cash assets. These obligations peaked in 2014 at 8,856 million USD and reached a minimum in 2016 at 7,068 million USD, maintaining a general range between 7 billion and 9 billion USD throughout the observed timeframe.

Cash Ratio Analysis

The cash ratio experienced a notable peak in 2015 at 1.16, marking the only instance where cash assets fully covered current liabilities. This was followed by a sharp correction to 0.63 in 2016, driven primarily by the substantial reduction in total cash assets. A consistent recovery trend is observed from 2016 through 2018, with the ratio improving to 0.85 and 0.92 respectively, suggesting a strengthening of the immediate liquidity position toward the end of the period.