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

Net Fixed Asset Turnover

The net fixed asset turnover ratio showed a generally increasing trend from September 2013 to September 2014, rising from 9.99 to 11.7. Thereafter, a significant spike occurred in December 2014, reaching 18.97, which remained relatively high but demonstrated a gradual decline over the subsequent quarters. From March 2015 through December 2018, the ratio fluctuated within a narrower range, mostly between 15.5 and 16.9, indicating a stabilization at this elevated level compared to earlier periods.

Total Asset Turnover

This ratio exhibited modest fluctuations over the analyzed period. Starting at 0.54 in September 2013, it increased gradually to peak around 0.62 in December 2014, followed by a gradual decline and stabilization mostly in the range of 0.54 to 0.57 for the majority of quarters thereafter. A notable drop to 0.47 was observed in December 2018, suggesting a decreased efficiency in using total assets to generate sales at that time.

Equity Turnover

The equity turnover ratio saw a steady rise from 1.67 in September 2013 to a peak of 2.01 by September 2014, followed by variability through the following years. It reached another peak of 2.01 in September 2016 after which it progressively declined, falling below 1.50 by December 2018, demonstrating reduced efficiency in generating sales from equity. The downturn in equity turnover was notable, particularly in the last two years of the period under review.

The financial data over the reported quarters reveal several important trends regarding revenues, fixed assets, and asset turnover ratios. These trends collectively provide insights into the operational dynamics and asset utilization efficiency over the period.

Revenues

Revenues exhibit a fluctuating pattern across the quarters. Beginning at approximately $7.1 billion in late 2013, revenues showed a general upward trend into early 2014, peaking above $8 billion by the end of 2013 and mid-2014. However, the latter half of 2014 and much of 2015 record declines, with revenues falling to under $6.2 billion by mid-2015. Subsequently, revenues rebounded toward the end of 2015, exceeding $7 billion, and continued to fluctuate around $7 billion to $8.5 billion through 2018, with some quarters experiencing dips but maintaining overall higher levels than mid-2015 lows. The data suggest periods of volatility but an overall resilience with revenues generally recovering and maintaining a broad range between $6.5 billion and $8.5 billion in the later periods.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment demonstrates a declining trend from around $2.9 billion at the start of the period to a low near $1.66 billion by the end of 2014 and early 2015. This represents a significant reduction in net fixed assets during this timeframe. Following this decline, a stabilization phase is evident, with net fixed assets slightly increasing and hovering around $1.65 billion to $1.97 billion through 2016 to 2018. This may indicate asset disposals or impairments early on, followed by reinvestments or a more stable asset base in later periods.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio shows an interesting dynamic, initially rising from just under 10 at the beginning of the period to a peak near 19 in late 2014. This sharp increase corresponds with the decline in net fixed assets, meaning revenues were generated more efficiently per unit of fixed assets. Following this peak, the turnover ratio declines gradually and stabilizes between approximately 15.5 and 16.9 from 2015 through 2018. The reduced turnover ratio in this phase may reflect the modest rebound in net fixed assets combined with a relatively stable revenue base, indicating a moderate efficiency in the use of fixed assets during these later years.

In summary, the data indicates that the company experienced cyclical revenue changes with noticeable fluctuations, a marked reduction and subsequent stabilization in net fixed assets, and a significant initial improvement in fixed asset utilization efficiency that moderated in more recent periods. The combination of declining net fixed assets and oscillating revenues initially enhanced the turnover ratio, but as fixed assets stabilized and revenues fluctuated, the asset efficiency settled into a steady, moderate range.

Revenue Trends

The revenues generally exhibit fluctuations across the reviewed quarters without a consistent upward or downward trend. Revenues peaked during certain periods such as December 2013 and December 2018, reaching above 8,000 million US dollars. There are notable dips in revenue around the mid-2015 and mid-2017 quarters where values approached closer to 6,000 million US dollars. Towards the end of the period, revenues appear to recover, reaching a significant high in December 2018.

Total Assets Movements

Total assets show a slight decline initially from September 2013 through to about September 2015, falling from over 53,000 million US dollars to just below 48,000 million US dollars. From this low point, total assets trend upwards steadily, crossing above 54,000 million US dollars by December 2018. The data indicates asset growth later in the period, with a marked jump between December 2018 and the last reported quarter.

Total Asset Turnover Patterns

The total asset turnover ratio, reflecting efficiency in using assets to generate revenue, starts modestly at around 0.54 to 0.62 during the earlier quarters. It maintains relative stability, generally fluctuating between 0.54 and 0.62 for most periods. However, in the final quarter reported, there is a noticeable decline to 0.47, indicating a potential decrease in asset utilization efficiency at that time.

Overall Insights

The data suggests that while revenues have significant quarter-to-quarter variability, the company manages to recover revenue levels consistently after periods of decline. Total assets experienced an initial contraction, followed by a recovery and growth phase, suggesting strategic asset management or acquisitions. The asset turnover ratio's decline in the last quarter may warrant further investigation as it could point to less effective asset use despite growing asset base and improved revenues.

Revenue Trends

Revenues experienced fluctuations over the observed quarters. Initially, there was a general upward trend from the third quarter of 2013 to the second quarter of 2014, with revenues rising from 7,061 million USD to 8,424 million USD. This was followed by a decline during the subsequent two years, reaching a low point around mid-2016 and mid-2017, with revenues frequently below 7,000 million USD. Beginning in late 2017, revenues showed a recovery trend, reaching 8,499 million USD by the fourth quarter of 2018. Despite this recovery, the revenue trajectory exhibited considerable volatility, lacking consistent growth throughout the period.

Stockholders’ Equity Evolution

The total stockholders' equity showed an overall increasing pattern but with notable periods of decline. Beginning at approximately 17,224 million USD in the third quarter of 2013, equity levels fluctuated and generally declined until the end of 2015, hitting about 14,504 million USD. Following this trough, equity gradually increased, surpassing 20,000 million USD by the end of 2018. The sharp rise at the end of the data series suggests a significant corporate event or an infusion of capital that substantially increased equity levels during late 2018.

Equity Turnover Ratio

The equity turnover ratio displayed a downward trend over the period analyzed. Starting at 1.67 in the third quarter of 2013, the ratio increased slightly, reaching a peak of 2.01 during mid-2014 and again in late 2016. However, from that point on, the ratio steadily decreased, ultimately declining to 0.97 by the end of 2018. This decline indicates that revenues generated per unit of equity decreased, suggesting a reduction in the efficiency of using equity to generate sales or a rapid increase in stockholders' equity not immediately matched by proportional revenue growth.

Summary Insights

The financial data reflect a period of volatility in revenues, with an initial increase followed by a significant decline and subsequent partial recovery. Stockholders’ equity displayed some inconsistencies but overall grew markedly by the end of the analysis period, particularly in the final quarter of 2018. The decrease in equity turnover ratio highlights a declining activity level or efficiency in utilizing equity to produce revenues. This combination may indicate a shift in company strategy, asset base expansion, or external market factors affecting operational performance and capital structure.