Fox (FOXA) Interest Coverage : 2.09 (As of Dec. 2023)

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What is Fox Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Fox's Operating Income for the three months ended in Dec. 2023 was $249 Mil. Fox's Interest Expense for the three months ended in Dec. 2023 was $-119 Mil. Fox's interest coverage for the quarter that ended in Dec. 2023 was 2.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Fox's Interest Coverage or its related term are showing as below:

FOXA' s Interest Coverage Range Over the Past 10 Years
Min: 6.19 Med: 9.95 Max: 110.22
Current: 6.19

FOXA's Interest Coverage is ranked worse than
61.54% of 611 companies
in the Media - Diversified industry
Industry Median: 11.96 vs FOXA: 6.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fox Interest Coverage Historical Data

The historical data trend for Fox's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Fox Interest Coverage Chart

Fox Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

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11.98

6.77

7.00

6.83

7.92

Fox Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.76	8.41	7.22	8.45	2.09

Competitive Comparison of Fox's Interest Coverage

For the Entertainment subindustry, Fox's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fox's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Fox's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Fox's Interest Coverage falls into.

Fox Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fox's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, Fox's Interest Expense was $-349 Mil. Its Operating Income was $2,764 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,886 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	2764	/	-349
	=	7.92

Fox's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Fox's Interest Expense was $-119 Mil. Its Operating Income was $249 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,091 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	249	/	-119
	=	2.09

The higher the ratio, the stronger the company's Financial Strength is.

Fox (NAS:FOXA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Fox Interest Coverage Related Terms

Thank you for viewing the detailed overview of Fox's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Fox (FOXA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Fox Corp (NAS:FOXA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FOX:USA FOX1:Mexico FO5:Germany FO5:Germany

Address

1211 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.foxcorporation.com

Fox represents the assets not sold to Disney by predecessor firm, Twenty First Century Fox, in 2019. The remaining assets include Fox News, the FOX broadcast network, FS1 and FS2, Fox Business, Big Ten Network, 28 owned and operated local television stations of which 17 are affiliated with the Fox Network, Tubi, and the Fox Studios lot. Since the Disney sale, Fox has acquired other related and unrelated assets including Credible Labs, a consumer fintech firm. The Murdoch family continues to control the successor firm, which represents a large-scale bet on the value of live sports and news in the U.S. market.

Executives

William A Burck	director	1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Cruden Financial Services Llc	10 percent owner	C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501
Murdoch Family Trust	10 percent owner	C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501
Roland A Hernandez	director	300 NORTH SAN RAFAEL AVE, PASADENA CA 91105
Chase Carey	director	C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Paul D Ryan	director	1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Anne Dias	director	1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Lachlan K Murdoch	director, officer: See Remarks	C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Keith Rupert Murdoch	director, officer: Co-Chairman	C/O FOX CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John Nallen	officer: Chief Operating Officer	C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Twenty-first Century Fox, Inc.	10 percent owner	1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jacques A Nasser	director
Viet D Dinh	officer: Chief Legal and Policy Officer	GEORGETOWN UNIVERSITY LAW CENTER, 600 NEW JERSEY AVENUE NW, WASHINGTON DC 20001
Steven Tomsic	officer: Chief Financial Officer	1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036