C

News Corporation — Earnings Quality Grade C

NWSA · Communication Services

Some red flags

Revenue
$8.5B
2025
Net Income
$1.2B
2025
Gross Margin
Free Cash Flow
$571M
01

Screening Summary

13
Passed
1
Watch
1
Failed
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 67 days, change +5 days YoY

A2AR vs Revenue Growth

AR growth 10.0% vs revenue growth 2.4%

A3Revenue vs CFFO

Revenue 2.4%, CFFO 9.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory growth 22.9%, COGS data unavailable

B2CapEx vs Revenue

CapEx growth 14.0% vs revenue 2.4%. Normal

B3SG&A Ratio

Insufficient data

B4Gross Margin

Insufficient data

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 0.83. Profits backed by cash

C2Free Cash Flow

FCF $0.6B, FCF/NI = 0.48

C3Accruals Ratio

Accruals ratio = 1.3%. Low accruals

!
C4Cash vs Debt

Cash $2.4B covers 82% of debt $2.9B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $6.3B = 72% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.1x. Healthy

D3Soft Asset Growth

Other assets -94.2% vs revenue 2.4%. Normal

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

05

Altman Z-Score

2.7
Safe Zone
0 Distress1.102.605.0+ Safe
0.1421
Liquidity
-0.0482
Cumulative profit
0.0617
Operating efficiency
1.4348
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10

News Corporation (NWSA) Earnings Quality Grade C — EarningsGrade