Paramount Global Class B (PARA)

Short-term

Turnover ratios

Paramount Global Class B's inventory turnover has shown a steady increase over the past five years, indicating that the company is efficiently managing its inventory. In 2024, the inventory turnover ratio slightly decreased, possibly suggesting a change in the company's inventory management strategy.

The receivables turnover ratio is not provided for any of the years, so it is not possible to evaluate how quickly Paramount Global Class B is collecting its accounts receivable.

Similarly, the payables turnover ratio is not available, making it difficult to assess how efficiently the company is managing its accounts payable.

The working capital turnover ratio shows fluctuations over the years, with a significant spike in 2022. This could indicate changes in the company's working capital management practices or business operations during that period.

In conclusion, Paramount Global Class B demonstrates strong inventory turnover efficiency, but further analysis is needed to evaluate its receivables and payables turnover performance. The working capital turnover ratio fluctuates, suggesting potential changes in the company's working capital management strategies over the years.

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Average number of days

Paramount Global Class B's Days of Inventory on Hand (DOH) has shown a decreasing trend over the years, indicating that the company is managing its inventory more efficiently. In particular, DOH has decreased from 42.78 days in 2020 to 26.83 days in 2024, which suggests that the company is selling its inventory faster or holding less inventory on hand.

The Days of Sales Outstanding (DSO), which measures how quickly the company collects revenue from its sales, is not provided in the data. The absence of DSO information makes it difficult to assess the efficiency of Paramount Global Class B in collecting its accounts receivable.

The Number of Days of Payables, also not available in the data, is crucial for understanding how long the company takes to pay its suppliers. Without this information, it is challenging to analyze the company's payment practices and liquidity management.

In summary, Paramount Global Class B has improved its inventory management efficiency based on the decreasing trend in DOH. However, the lack of data on DSO and the Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios and working capital management.

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See also:

Paramount Global Class B Short-term (Operating) Activity Ratios

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Long-term

The fixed asset turnover ratio for Paramount Global Class B has shown a decrease from 2.44 (December 31, 2020) to 2.14 (December 31, 2021), indicating a decline in the efficiency of generating sales from fixed assets. However, there was a significant spike in this ratio to 17.11 (December 31, 2022), which may suggest either a substantial increase in sales relative to fixed assets or a decrease in the carrying value of fixed assets.

In contrast, the total asset turnover ratio has been steadily increasing from 0.48 (December 31, 2020) to 0.63 (December 31, 2024). This indicates that the company is generating more sales revenue relative to its total assets over the years, reflecting an improvement in overall asset utilization efficiency.

Overall, the fixed asset turnover ratio fluctuated with a notable spike in 2022, while the total asset turnover ratio exhibited a positive trend, reflecting increasing efficiency in utilizing both fixed and total assets to generate sales for Paramount Global Class B.

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See also:

Paramount Global Class B Long-term (Investment) Activity Ratios