Paramount Global Class B (PARA)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	28,069,000	28,496,000	28,281,000	28,032,000	27,744,000	27,406,000	26,830,000	25,364,000	24,719,000	22,610,000	22,029,000	21,575,000	21,443,000	15,922,000	13,486,000	11,593,000	9,332,000	12,689,000	12,502,000	12,192,000
Inventory	US$ in thousands	1,414,000	1,754,000	1,533,000	1,085,000	1,342,000	1,492,000	1,347,000	950,000	1,504,000	1,563,000	1,419,000	1,137,000	1,757,000	1,869,000	1,837,000	1,431,000	2,813,000	1,964,000	1,945,000	1,533,000
Inventory turnover		19.85	16.25	18.45	25.84	20.67	18.37	19.92	26.70	16.44	14.47	15.52	18.98	12.20	8.52	7.34	8.10	3.32	6.46	6.43	7.95

December 31, 2023 calculation

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

Based on the data provided, Paramount Global's inventory turnover for each quarter from Q1 2022 to Q4 2023 has consistently been reported as 0.00. This indicates that the company is not effectively managing its inventory levels or turnover rate during this period. An inventory turnover ratio of 0.00 suggests that the company is either carrying a significant amount of obsolete or slow-moving inventory, facing challenges in selling its products, or inefficiently managing its supply chain.

It is crucial for Paramount Global to improve its inventory turnover ratio as a low or zero inventory turnover can lead to increased storage costs, cash flow constraints, and potential losses from inventory write-downs. The company may consider implementing better inventory management practices, such as optimizing procurement processes, enhancing demand forecasting, reducing excess inventory levels, and improving inventory tracking and monitoring systems. Additionally, Paramount Global should review its product mix, pricing strategies, and sales channels to enhance inventory turnover and overall operational efficiency.