Paramount Global Class B (PARA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	19,437,000	22,388,000	19,845,000	17,744,000	14,992,000
Inventory	US$ in thousands	1,429,000	1,414,000	1,342,000	1,504,000	1,757,000
Inventory turnover		13.60	15.83	14.79	11.80	8.53

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $19,437,000K ÷ $1,429,000K
= 13.60

Paramount Global Class B's inventory turnover has shown a consistent upward trend over the past five years, indicating improved efficiency in managing its inventory levels. The inventory turnover ratio increased from 8.53 in December 2020 to 13.60 in December 2024.

This signifies that Paramount Global Class B has been able to sell its inventory more frequently each year relative to the average level of inventory held. A higher inventory turnover ratio is generally viewed positively as it suggests that the company is efficiently managing its inventory, minimizing carrying costs, and potentially generating more revenue from its inventory investments.

The significant improvement in inventory turnover ratios over the years highlights the company's effective inventory management practices, potentially leading to better cash flow and profitability. It is essential for Paramount Global Class B to continue monitoring and optimizing its inventory turnover to sustain operational efficiency and financial performance in the future.