Paramount Global Class B (PARA)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	19.85	20.67	16.44	12.21	8.59
Receivables turnover	4.04	3.93	3.97	3.46	3.75
Payables turnover	25.52	19.77	30.90	37.58	38.22
Working capital turnover	9.43	11.45	3.85	4.42	9.46

Based on the provided data for Paramount Global's activity ratios, we can observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio for Paramount Global has been consistently reported as 0.00 across the years 2019 to 2023. This may indicate that Paramount Global is not effectively managing its inventory or has a significant amount of stagnant inventory on hand.

2. Receivables Turnover:
- The receivables turnover ratio has shown a generally increasing trend from 2019 to 2023, indicating that Paramount Global has been more efficient in collecting receivables from its customers over the years. The ratio stood at 3.86 in 2019 and improved to 4.17 in 2023, suggesting that the company is collecting receivables more quickly.

3. Payables Turnover:
- The payables turnover ratio for Paramount Global has remained constant at 0.00 across all the years from 2019 to 2023. This may suggest that the company is not effectively managing its payables or has extended payment terms with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated over the years, ranging from a low of 3.97 in 2021 to a high of 11.86 in 2022. A higher working capital turnover ratio typically indicates that Paramount Global is efficient in generating sales revenue relative to its working capital. However, the ratio decreased to 9.73 in 2023, showing a decline in efficiency in converting working capital into sales.

In summary, Paramount Global has shown improvements in managing its receivables turnover, but there are concerns regarding the stagnant inventory turnover and the lack of data for payables turnover. The fluctuation in the working capital turnover ratio requires further analysis to understand the company's overall efficiency in utilizing its working capital to generate sales.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	18.39	17.66	22.21	29.89	42.51
Days of sales outstanding (DSO)	days	90.37	92.90	91.93	105.62	97.37
Number of days of payables	days	14.30	18.46	11.81	9.71	9.55

Based on the provided data for Paramount Global, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH): Unfortunately, data for Days of Inventory on Hand is not available for the years 2023, 2022, 2021, 2020, and 2019. DOH measures the average number of days a company holds its inventory before selling it. A lower DOH indicates a faster turnover of inventory, which is generally more favorable as it reduces carrying costs and the risk of obsolescence.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding for Paramount Global have shown a decreasing trend over the years, from 101.29 days in 2020 to 87.58 days in 2023. DSO indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO suggests that the company is efficient in collecting payments from its customers, which is positive for cash flow management.

3. Number of Days of Payables: Similar to DOH, data for the Number of Days of Payables is not available for the years 2023, 2022, 2021, 2020, and 2019. This ratio measures the average number of days it takes a company to pay its suppliers. A higher number of days of payables may indicate that the company is taking longer to settle its accounts with suppliers, potentially benefiting from extended payment terms.

In conclusion, while the data for DOH and Number of Days of Payables is unavailable, the decreasing trend in Days of Sales Outstanding for Paramount Global suggests a potential improvement in the efficiency of collecting payments from customers over the years. Monitoring these activity ratios can provide insights into the company's inventory management, accounts receivable processes, and supplier payment practices, ultimately impacting its working capital and overall financial performance.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	17.25	16.53	15.97	12.28	13.44
Total asset turnover	0.54	0.50	0.47	0.46	0.54

Paramount Global's long-term activity ratios show an improving trend over the past five years. The fixed asset turnover ratio has been consistently increasing from 13.34 in 2019 to 17.80 in 2023, indicating that the company is generating more revenue from its fixed assets each year. This could be a result of improved operational efficiency or effective utilization of its fixed assets to drive revenue growth.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with a dip in 2021 followed by a rebound in 2022 and 2023. The ratio indicates that Paramount Global generates revenue equal to approximately 55% of its total assets in 2023, up from 52% in 2022 and 49% in 2021. This suggests that the company is becoming more efficient in generating sales relative to its total asset base.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios reflects positively on Paramount Global's operational efficiency and asset utilization, which could lead to enhanced profitability and financial performance in the long term.