Paramount Global Class B (PARA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.04	3.93	3.97	3.46	3.75
DSO	days	90.37	92.90	91.93	105.62	97.37

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.04
= 90.37

Paramount Global's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. A lower DSO is generally favorable as it indicates quicker conversion of sales into cash, improving liquidity.

Analyzing the trend over the past five years, we observe slight fluctuations in Paramount Global's DSO. In 2023, the DSO decreased to 87.58 days from 89.72 days in 2022, showing an improvement in collecting payments. However, compared to 2021, there was only a marginal decrease from 89.18 days.

Looking further back, in 2020, the DSO was notably higher at 101.29 days, indicating a longer collection period, possibly due to operational issues or changes in customer payment behaviors. The DSO improved in 2021 and has since shown a relatively stable trend.

Although Paramount Global has managed to reduce its DSO in 2023, further analysis is needed to understand the underlying reasons for this improvement and to assess the effectiveness of the company's credit and collection policies. Tracking DSO over upcoming periods will provide insights into the company's ability to efficiently manage receivables and maintain healthy cash flows.