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

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a significant upward trend from 9.78 in 2013 to a peak of 16.83 in 2015. Following this peak, the ratio experiences a gradual decline, reaching 15.54 by 2018. This pattern indicates an initial improvement in the efficiency of utilizing fixed assets to generate revenue, followed by a modest reduction in asset utilization efficiency in the subsequent years.

Total Asset Turnover

The total asset turnover ratio remains relatively stable throughout the analyzed period, fluctuating slightly within a narrow range from 0.54 in 2013 to 0.56 in 2018. This constancy suggests that the overall efficiency of the company in using its total assets to generate sales has neither improved nor deteriorated materially over the years.

Equity Turnover

The equity turnover ratio shows some variability, increasing initially from 1.63 in 2013 to 1.83 in 2014, then decreasing to 1.68 in 2015. A notable surge occurs in 2016, with the ratio reaching 2.0, which represents the highest point in the observed timeframe. Subsequently, the ratio declines to 1.81 in 2017 and further to 1.55 in 2018. This pattern reflects fluctuations in how effectively the company utilizes shareholders' equity to generate revenue, with a peak in 2016 followed by a declining trend in the last two years.

The financial data reveals key trends in revenues, property, plant and equipment (PPE), and net fixed asset turnover over the six-year period ending June 30, 2018.

Revenues

Revenues show notable fluctuations throughout the period. Starting at $27,675 million in 2013, there was a marked increase in 2014, peaking at $31,867 million. However, revenues declined in the subsequent years 2015 and 2016, reaching a low of $27,326 million in 2016. The following two years saw a recovery trend, with revenues increasing to $28,500 million in 2017 and further to $30,400 million in 2018. Overall, revenues demonstrated volatility but exhibited moderate growth from 2013 to 2018.

Property, Plant and Equipment, Net

The net value of property, plant and equipment declined significantly from $2,829 million in 2013 to $1,692 million in 2016, representing a reduction of approximately 40%. This downward trend reversed gradually after 2016, with net PPE increasing to $1,781 million in 2017 and further to $1,956 million in 2018. Despite the both decline and partial recovery, net PPE at the end of 2018 remained well below the 2013 peak, indicating possible divestitures, asset disposals, or reduced investment in fixed assets during the initial years.

Net Fixed Asset Turnover

This ratio, which measures the efficiency of fixed assets in generating revenues, exhibited significant fluctuations. It rose sharply from 9.78 in 2013 to a peak of 16.83 in 2015, suggesting improved utilization of the fixed assets despite the decrease in their net value. After this peak, the ratio showed a slight declining trend, decreasing to 15.54 by 2018. This suggests that while asset utilization remained relatively high, it experienced some deceleration towards the end of the period.

In summary, the company experienced variable revenue levels with a general upward trend toward the end of the analyzed period. The decrease in net property, plant and equipment coupled with increased fixed asset turnover until 2015 indicates enhanced asset efficiency, possibly through better management or asset optimization. The softening of asset turnover ratio after 2015, alongside recovery in asset base, may imply a shift in operational dynamics or investment strategy in recent years.

Revenues

The revenue figures exhibit fluctuations over the six-year period. After an initial increase from 27,675 million US dollars in 2013 to a peak of 31,867 million in 2014, revenues declined to 28,987 million in 2015 and further decreased to 27,326 million by 2016. Subsequently, there was a recovery trend with revenues rising to 28,500 million in 2017 and further to 30,400 million in 2018. This pattern indicates some volatility with a significant dip mid-period followed by a gradual recovery towards the end.

Total assets

Total assets increased from 50,944 million US dollars in 2013 to 54,793 million in 2014 before decreasing steadily to 50,051 million in 2015 and further to 48,365 million in 2016. From 2017 onwards, total assets showed an upward movement again, reaching 50,724 million and then 53,831 million in 2018. This trend suggests a strategic reduction in asset base in the middle years, possibly reflecting divestitures or asset optimization, followed by renewed asset accumulation later on.

Total asset turnover

The total asset turnover ratio remained relatively stable across the period, fluctuating slightly between 0.54 and 0.58. Starting at 0.54 in 2013, it increased to 0.58 in 2014 and remained at this level in 2015, before decreasing marginally to 0.56 over the last three years. This stability in the turnover ratio indicates consistent efficiency in utilizing assets to generate revenues despite changes in the absolute asset and revenue values.

Summary

Overall, the data reveals a cycle of growth and contraction in both revenues and assets with an associated stability in asset utilization efficiency. The revenue peak in 2014 followed by declines suggests possible market or operational challenges during the middle years, with subsequent recovery indicating improvement. The total assets movement reflects recalibrations in asset management strategy. The steady total asset turnover ratio underscores the company's sustained ability to convert assets into sales, maintaining operational effectiveness throughout changing market conditions.

The financial data reveals varying trends in key metrics over the six-year period analyzed.

Revenues

Revenues experienced fluctuations throughout the period. Starting at $27,675 million in mid-2013, revenues increased to a peak of $31,867 million by mid-2014. Subsequently, there was a decline to $28,987 million in mid-2015 and further reduction to $27,326 million in mid-2016. Afterward, revenues showed a moderate recovery, rising to $28,500 million in mid-2017 and $30,400 million in mid-2018. Overall, revenues exhibit a pattern of initial growth, followed by a dip, and a partial rebound.

Total Stockholders’ Equity

Equity followed a somewhat volatile trajectory. Beginning at $16,998 million in 2013, it gently increased to $17,418 million in 2014 and maintained a similar level in 2015 at $17,220 million. However, a notable drop occurred in 2016, with equity falling to $13,661 million, which represents a significant contraction. Subsequently, equity recovered to $15,722 million in 2017 and increased markedly to $19,564 million in 2018, surpassing prior levels. This indicates a period of financial strain followed by a strong recovery in equity values.

Equity Turnover Ratio

The equity turnover ratio, indicating how efficiently equity is used to generate revenues, showed variability. Starting at 1.63 in 2013, the ratio improved to 1.83 in 2014, suggesting increased efficiency. It then declined to 1.68 in 2015 before peaking at 2.00 in 2016, indicating the highest efficiency in the period analyzed. Following this peak, the ratio decreased to 1.81 in 2017 and further declined to 1.55 in 2018, the lowest level in the six-year span. This pattern suggests that while operational efficiency in utilizing equity improved significantly by 2016, it weakened in subsequent years.

In summary, the financial performance over these years reflects a period of instability, particularly evident in equity values and revenue fluctuations. The peak in revenue in 2014 and the equity turnover peak in 2016 suggest phases of strong operational performance, while declines midway through the period indicate challenges. The recovery in both revenues and stockholders' equity by 2018 points to a restoration of financial strength towards the end of the analyzed timeframe.