Paramount Global Class B (PARA)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	28,069,000	27,744,000	24,719,000	21,458,000	24,153,000
Inventory	US$ in thousands	1,414,000	1,342,000	1,504,000	1,757,000	2,813,000
Inventory turnover		19.85	20.67	16.44	12.21	8.59

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $28,069,000K ÷ $1,414,000K
= 19.85

Based on the data provided, Paramount Global's inventory turnover ratios for the past five years are all reported as 0.00. This indicates that the company's inventory turnover was very low or possibly non-existent during these periods. A low or zero inventory turnover ratio may suggest that Paramount Global had excessive or stagnant inventory levels relative to its sales.

A consistently low or zero inventory turnover ratio could imply several potential issues, such as ineffective inventory management, overstocking, obsolete inventory, poor demand forecasting, or inefficient production processes. It may also indicate a lack of sales or difficulties in converting inventory into sales.

Further analysis and investigation into the reasons behind the consistently low inventory turnover ratios are essential to identify and address any underlying operational inefficiencies or challenges that Paramount Global may be facing in managing its inventory effectively.