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

Inventory Turnover

Inventory turnover ratio showed an initial increase from 6.28 in 2013 to a peak of 6.83 in 2014, followed by a slight decline to 6.75 in 2015. From 2015 onward, there was a more noticeable decrease, reaching 5.39 by 2018. This indicates a gradual slowdown in how efficiently inventory was managed over time.

Receivables Turnover

The receivables turnover ratio exhibited a declining trend from 5.07 in 2013 to 4.27 in 2018, illustrating a steady decrease in the efficiency of collecting receivables. This trend suggests that accounts receivable were remaining outstanding for longer periods over the years.

Payables Turnover

Data for payables turnover only began in 2016, with a very high ratio of 63.44 that sharply declined to 43.78 in 2017 and slightly increased to 44.63 in 2018. This pattern indicates a decrease in the frequency of payment to suppliers after 2016, with some stability observed in the last two years.

Working Capital Turnover

The working capital turnover ratio increased from 3.88 in 2013 to 4.89 in 2014 but then showed a significant decline, falling to 2.74 by 2018. This declining trend suggests diminishing efficiency in utilizing working capital to generate revenue over the period analyzed.

Average Inventory Processing Period

The average inventory processing period decreased from 58 days in 2013 to 53 days in 2014, remained relatively stable at 54 days in 2015, then rose sharply to 70 days in 2016. Although it decreased to 64 days in 2017, it increased again to 68 days in 2018, indicating a general lengthening of the time inventory was held, consistent with the declining inventory turnover ratio.

Average Receivable Collection Period

The average receivable collection period was fairly steady around 72-74 days from 2013 to 2015, then increased to 84 days in 2016 and fluctuated slightly between 83 and 85 days in 2017 and 2018 respectively. This reflects a lengthening duration for collecting receivables, which aligns with the decreasing receivables turnover ratio.

Operating Cycle

The operating cycle showed a gradual increase from 130 days in 2013 to a peak of 154 days in 2016, then decreased slightly to 147 days in 2017 before rising again to 153 days in 2018. This trend indicates that the combined number of days inventory is held and receivables are collected generally increased, which could signal slower overall operational efficiency.

Average Payables Payment Period

The average payables payment period was reported only from 2016 onwards, starting at 6 days in 2016 and rising to 8 days in both 2017 and 2018. This suggests the company took slightly longer to pay its suppliers during the later years.

Cash Conversion Cycle

The cash conversion cycle was available from 2016 to 2018 and showed a decrease from 148 days in 2016 to 139 days in 2017, then increased again to 145 days in 2018. These fluctuations imply some inconsistency in the time taken between cash outflow for inventory and cash inflow from receivables, with the overall level remaining elevated.

Operating Expenses

The operating expenses exhibited a fluctuating pattern over the analyzed years. Beginning at $17,496 million in 2013, they increased significantly to $21,108 million in 2014. Following this peak, there was a decline to $18,561 million in 2015 and a further drop to $17,129 million in 2016. However, expenses began to rise again in 2017, reaching $17,775 million, and continued this upward trend into 2018, peaking at $19,769 million. Overall, the period saw volatility with an initial surge, a mid-term contraction, and a subsequent recovery in operating costs.

Inventories, Net

Net inventories showed a general upward trend despite some variations. Starting at $2,784 million in 2013, inventories increased to $3,092 million in 2014, then declined to $2,749 million in 2015. After this dip, inventories rose notably to $3,291 million in 2016, followed by a slight decrease to $3,101 million in 2017. The highest value across the period was recorded in 2018 at $3,669 million. This pattern suggests an overall growth in inventory holdings with intermittent short-term reductions.

Inventory Turnover Ratio

The inventory turnover ratio, which indicates how efficiently inventory is managed relative to sales, showed a downward trend over the period. It began at 6.28 in 2013 and increased slightly to 6.83 in 2014. Afterwards, the ratio gradually decreased to 6.75 in 2015, then dropped more significantly to 5.2 in 2016. Modest recoveries to 5.73 and 5.39 occurred in 2017 and 2018 respectively, but these levels remained below the earlier years. This decline suggests a reduction in the speed at which inventory was sold or used, potentially indicating slower inventory turnover or accumulation of stock relative to sales over time.

Revenues

Revenues showed a generally fluctuating trend between 2013 and 2018. Starting at 27,675 million USD in 2013, revenues increased significantly to 31,867 million USD in 2014, representing a peak during the period. Subsequently, revenues declined to 28,987 million USD in 2015 and further decreased to 27,326 million USD in 2016. From 2016 onwards, revenues exhibited a recovery trend, rising to 28,500 million USD in 2017 and further to 30,400 million USD in 2018. Overall, the revenues experienced volatility with a peak in 2014 and a trough in 2016, followed by moderate growth in the final two years.

Receivables, net

Net receivables demonstrated a consistently upward trend throughout the period. Beginning at 5,459 million USD in 2013, net receivables increased steadily each year, reaching 7,120 million USD by 2018. This represents a cumulative increase of approximately 30.5% over six years, indicating a growth in amounts owed to the company from its customers or other sources.

Receivables turnover ratio

The receivables turnover ratio showed a declining trend over the analyzed years. It started at 5.07 in 2013 and slightly decreased to 4.93 in 2014, maintaining a near level of 4.9 in 2015. From 2015 onwards, the ratio fell more notably to 4.37 in 2016, with minor fluctuations to 4.4 in 2017 and 4.27 in 2018. This downward trend suggests a lengthening in the collection period of receivables or a less efficient conversion of receivables into cash over time.

Operating Expenses

The operating expenses exhibited a fluctuating trend over the analyzed period. Beginning at 17,496 million USD in June 2013, the expenses increased significantly to 21,108 million USD in June 2014. This was followed by a notable decline to 18,561 million USD in June 2015 and a further reduction to 17,129 million USD in June 2016. From 2016 onward, operating expenses showed a slight upward trend, rising to 17,775 million USD in June 2017 and then increasing more substantially to 19,769 million USD in June 2018. Overall, the data indicates a peak in operating expenses in 2014, with a subsequent decline and moderate recovery towards 2018.

Accounts Payable

Accounts payable data is available starting only from June 2016, with 270 million USD reported. This value rose to 406 million USD in June 2017 and increased slightly to 443 million USD in June 2018. This represents a steady growth in accounts payable over the three years for which data is present, implying potentially increased credit purchases or delayed payments over this period.

Payables Turnover Ratio

The payables turnover ratio is available from June 2016 onward. The ratio declined significantly from 63.44 in June 2016 to 43.78 in June 2017, followed by a marginal increase to 44.63 in June 2018. The substantial decrease in this ratio between 2016 and 2017 could indicate that the company took longer to pay its suppliers, reflecting either improved payment terms, cash flow management, or operational adjustments. The slight rise in 2018 suggests a minor acceleration in payment rates.

Working Capital

Working capital exhibited fluctuations over the analyzed period. It initially decreased from 7,132 million USD in mid-2013 to 6,520 million USD in mid-2014, then experienced a substantial increase reaching 10,114 million USD by mid-2015. After a decline to 7,881 million USD in mid-2016, it subsequently rose again, ending at 11,089 million USD in mid-2018. Overall, working capital demonstrates a trend of volatility but with a general upward movement toward the end of the period.

Revenues

Revenues showed variability but maintained a relatively stable pattern within a mid-20,000 to low-30,000 million USD range. After rising from 27,675 million USD in mid-2013 to a peak of 31,867 million USD in mid-2014, they declined to 27,326 million USD in mid-2016, followed by a moderate recovery to 30,400 million USD in mid-2018. This suggests some sensitivity to market or operational conditions, but no dramatic long-term growth or contraction.

Working Capital Turnover

The working capital turnover ratio, which measures the efficiency of using working capital to generate revenues, demonstrated a declining trend from 3.88 in mid-2013, peaking at 4.89 in mid-2014, then steadily decreasing to 2.74 by mid-2018. The decline indicates a reduced efficiency in utilizing working capital to produce revenue throughout the period, implying either an increase in working capital not matched by proportional revenue growth or operational inefficiencies.

Inventory turnover

The inventory turnover ratio exhibited an overall declining trend from 2013 to 2018. It started at 6.28 in 2013, increased slightly to a peak of 6.83 in 2014, then gradually decreased to 5.39 by 2018. This suggests a reduction in the frequency at which inventory was sold and replaced over the years, indicating potential changes in sales efficiency or inventory management.

Average inventory processing period

The average inventory processing period, expressed in number of days, showed a generally increasing trend throughout the period. Beginning at 58 days in 2013, it decreased slightly to 53 days in 2014, then reversed direction and increased steadily to 68 days by 2018. This increase implies that inventory was held for longer durations before sale, which complements the observed decline in inventory turnover.

Receivables Turnover

The receivables turnover ratio exhibits a declining trend over the six-year period. Starting at 5.07 in June 2013, it decreased steadily to 4.27 by June 2018. This downward movement suggests that the company is collecting its receivables less frequently each year, indicating a potential slowdown in the efficiency of receivables management.

Average Receivable Collection Period

The average receivable collection period shows an increasing trend during the same timeframe. It extended from 72 days in June 2013 to 85 days in June 2018, with some fluctuations. Notably, the period rose significantly between 2015 and 2016, reaching 84 days, and remained relatively high thereafter. This increase corresponds inversely with the receivables turnover ratio, reinforcing the observation that the company is taking longer to collect its outstanding receivables.

Overall Analysis

The combined patterns of a decreasing receivables turnover ratio and an increasing collection period imply that the company faces challenges in collecting payments promptly over time. This trend could impact cash flow and working capital efficiency, warranting further investigation into credit policies, customer payment behaviors, or market conditions affecting receivables performance.

The financial data reflects the operational efficiency characteristics over a six-year period, focusing on inventory management, receivables collection, and the overall operating cycle.

Average Inventory Processing Period

This metric, expressed in number of days, exhibits some fluctuation throughout the years. It started at 58 days in mid-2013 and decreased slightly to 53 days by mid-2014. A marginal increase to 54 days was observed in mid-2015, followed by a significant jump to 70 days in mid-2016. Subsequently, it declined to 64 days in mid-2017 and climbed again to 68 days by mid-2018. Overall, there is a rising tendency in the latter years after an initial dip.

Average Receivable Collection Period

This indicator remained relatively stable in the initial three years at around 72-74 days, with 72 days in 2013 and consistent 74 days for 2014 and 2015. However, from 2016 onwards, there was an upward trend with the period increasing to 84 days in 2016, slightly decreasing to 83 days in 2017, and then rising again to 85 days in 2018. This suggests a lengthening in the time taken to collect receivables in recent years.

Operating Cycle

The operating cycle, aggregating inventory processing and receivable collection periods, shows a similar trajectory to the individual components. It decreased modestly from 130 days in 2013 to 127 days in 2014 and slightly increased to 128 days in 2015. A pronounced increase occurred in 2016, reaching 154 days. Following that, it slightly decreased to 147 days in 2017, then increased again to 153 days by mid-2018. This pattern indicates a lengthening of the overall operating cycle, particularly evident after 2015, potentially reflecting slower turnover and receivables collection.

Payables Turnover

The payables turnover ratio was recorded starting in 2016, exhibiting a notable decline from 63.44 in 2016 to 43.78 in 2017, followed by a slight increase to 44.63 in 2018. This trend indicates that the company made payments to its suppliers less frequently after 2016, which could suggest extended payment terms or changes in purchasing strategies.

Average Payables Payment Period

The average payables payment period increased from 6 days in 2016 to 8 days in both 2017 and 2018. This indicates that the company took longer on average to settle its payables over these years, consistent with the declining trend in payables turnover. The stabilization at 8 days for the final two years suggests a maintained payment cycle length during that period.

Average Inventory Processing Period

The average inventory processing period shows fluctuations over the six-year period. It started at 58 days in 2013, slightly decreased to 53 days in 2014, and then remained relatively stable at 54 days in 2015. Thereafter, the period increased significantly to 70 days in 2016, followed by a decrease to 64 days in 2017, and a subsequent rise to 68 days in 2018. This indicates variability in the time taken to process inventory, with a noticeable peak in 2016.

Average Receivable Collection Period

The average receivable collection period maintained a generally upward trend during the observed period. Starting from 72 days in 2013, it increased slightly to 74 days in both 2014 and 2015. A more pronounced rise occurred in 2016 when it reached 84 days, followed by a slight decrease to 83 days in 2017 and an increase again to 85 days in 2018. Overall, the company has taken longer to collect receivables over time, suggesting a potential extension in credit terms or slower collections.

Average Payables Payment Period

Data for the average payables payment period is only available from 2016 onwards. The period was notably short at 6 days in 2016, before increasing to 8 days in 2017 and remaining steady at 8 days in 2018. This indicates a modest increase in the time the company takes to pay its suppliers, yet the payment period remains relatively brief.

Cash Conversion Cycle

The cash conversion cycle, which represents the net time between cash outlay and cash recovery, is reported starting in 2016. It was 148 days in 2016, improved to 139 days in 2017, indicating a more efficient cash conversion, but then lengthened again to 145 days in 2018. These fluctuations suggest that the company's operational cash flow efficiency varied, with a temporary improvement followed by a slight decline.