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News Altman Z-Score

: 1.28 (As of Today)
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Warning Sign:

Altman Z-score of 1.28 is in distress zone. This implies bankruptcy possibility in the next two years.

News has a Altman Z-Score of 1.28, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for News's Altman Z-Score or its related term are showing as below:

NWSA' s Altman Z-Score Range Over the Past 10 Years
Min: 0.12   Med: 1.7   Max: 2.75
Current: 1.28

During the past 13 years, News's highest Altman Z-Score was 2.75. The lowest was 0.12. And the median was 1.70.


News Altman Z-Score Historical Data

The historical data trend for News's Altman Z-Score 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.

* Premium members only.

News Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.16 1.48 0.75 1.70 1.31

News Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.70 1.75 1.76 1.57 1.31

Competitive Comparison

For the Entertainment subindustry, News's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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.

   

News Altman Z-Score Distribution

For the Media - Diversified industry and Communication Services sector, News's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where News's Altman Z-Score falls into.



News Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

News's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0333+1.4*-0.1332+3.3*0.0529+0.6*1.0809+1.0*0.603
=1.28

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $17,221 Mil.
Total Current Assets was $4,093 Mil.
Total Current Liabilities was $3,519 Mil.
Retained Earnings was $-2,293 Mil.
Pre-Tax Income was -20 + 133 + 361 + 338 = $812 Mil.
Interest Expense was -31 + -25 + -21 + -22 = $-99 Mil.
Revenue was 2674 + 2492 + 2717 + 2502 = $10,385 Mil.
Market Cap (Today) was $8,732 Mil.
Total Liabilities was $8,078 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(4093 - 3519)/17221
=0.0333

X2=Retained Earnings/Total Assets
=-2293/17221
=-0.1332

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(812 - -99)/17221
=0.0529

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=8731.630/8078
=1.0809

X5=Revenue/Total Assets
=10385/17221
=0.603

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

News has a Altman Z-Score of 1.28 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


News  (NAS:NWSA) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


News Altman Z-Score Related Terms

Thank you for viewing the detailed overview of News's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


News Business Description

News logo
Address
1211 Avenue of the Americas, New York, NY, USA, 10036
News Corporation is a media conglomerate with large presence in the U.S, the U.K., and Australia. Key brands include The Wall Street Journal, Herald Sun, and The Times. The company also has a strong presence in the Australian pay-TV market through Fox Sports and Foxtel (both 65%-owned), while its 62%-owned REA Group is the dominant real estate classified business in Australia. In addition, it owns HarperCollins, one of the largest book publishers globally, and also has a substantial digital property advertising business (Move) in the U.S.
Executives
Ayotte Kelly director C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Panuccio Susan officer: Chief Financial Officer C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Pitofsky David B officer: General Counsel C/O NEWS CORPORATION 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Klein Joel director C/O NEWS AMERICA INCORPORATED 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Halpin Kevin officer: Deputy Chief Financial Officer 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Murdoch Lachlan K director C/O NEWS AMERICA INCORPORATED 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Elkann John director 1211 AVENUE OF THE AMERICAS NEW YORK NY 10003
Chao Elaine L. director C/O DOLE FOOD COMPANY, INC. ONE DOLE DRIVE WESTLAKE VILLAGE CA 91362
Murdoch James R director C/O LUPA SYSTEMS 363 LAFAYETTE STREET NEW YORK NY 10022
Pessoa Ana Paula director 1211 AVENUE OF THE AMERICAS NEW YORK NY 10003
Siddiqui Masroor director 1211 AVENUE OF THE AMERICAS NEW YORK NY 10003
Bancroft Natalie director C/O NEWS AMERICA INCORPORATED 1211 AVENUE OF THE AMERICAS NEW YORK NY 10036
Aznar Jose Maria director C/O NEWS AMERICA INCORPORATED 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

News Headlines

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