Paramount Global Class B (PARA)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	28,736,000	29,122,000	27,728,000	24,250,000	27,013,000
Property, plant and equipment	US$ in thousands	1,666,000	1,762,000	1,736,000	1,975,000	2,010,000
Fixed asset turnover		17.25	16.53	15.97	12.28	13.44

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $28,736,000K ÷ $1,666,000K
= 17.25

The fixed asset turnover ratio for Paramount Global has shown a consistent improvement over the past five years, indicating the company's ability to generate sales revenue from its investment in fixed assets. The ratio has increased from 13.34 in 2019 to 17.80 in 2023, reflecting an upward trend in efficiency in utilizing fixed assets to generate sales.

The rising trend in fixed asset turnover suggests that Paramount Global has been more effective in deploying its fixed assets to support revenue generation over the years. This improvement could be attributed to better operational efficiency, effective asset utilization, or strategic investments in fixed assets that have contributed to higher sales productivity.

A higher fixed asset turnover ratio indicates that Paramount Global is generating more sales per dollar invested in fixed assets. This could be a positive signal for investors and stakeholders, as it shows the company's ability to maximize the return on its investment in fixed assets and improve overall operational performance.

Overall, the increasing trend in Paramount Global's fixed asset turnover ratio reflects the company's efficiency in utilizing its fixed assets to drive sales growth and generate value for shareholders.