Paramount Global Class B (PARA)
Receivables 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 |
| Receivables | US$ in thousands | 7,115,000 | 7,412,000 | 6,984,000 | 7,017,000 | 7,206,000 |
| Receivables turnover | 4.04 | 3.93 | 3.97 | 3.46 | 3.75 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $28,736,000K ÷ $7,115,000K
= 4.04
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. Paramount Global's receivables turnover has shown a positive trend over the past five years, increasing from 3.86 in 2019 to 4.17 in 2023.
This indicates that Paramount Global has been able to collect payments from its customers more quickly in recent years. A higher receivables turnover ratio generally suggests that the company has strong credit policies in place and is effectively managing its accounts receivable.
The consistent improvement in the receivables turnover ratio reflects positively on Paramount Global's liquidity and ability to convert its accounts receivable into cash. It also indicates that the company may be effectively managing its credit risk and collections processes.
Overall, the increasing trend in Paramount Global's receivables turnover ratio suggests that the company is efficiently managing its accounts receivable and collecting payments in a timely manner, which is a positive indicator of its financial health and operational efficiency.
Peer comparison
Dec 31, 2023