Paramount Global Class B (PARA)

Working capital 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
Total current assets	US$ in thousands	12,703,000	13,734,000	16,676,000	13,779,000	11,902,000
Total current liabilities	US$ in thousands	9,656,000	11,191,000	9,479,000	8,296,000	9,048,000
Working capital turnover		9.43	11.45	3.85	4.42	9.46

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $28,736,000K ÷ ($12,703,000K – $9,656,000K)
= 9.43

Working capital turnover is a financial ratio that measures a company's ability to efficiently utilize its working capital to generate revenue. A higher working capital turnover indicates that the company is generating more revenue per unit of working capital.

Paramount Global's working capital turnover has fluctuated over the past five years, as follows:
- In 2023, the working capital turnover was 9.73, showing a decrease from the previous year.
- In 2022, the working capital turnover was 11.86, indicating a strong performance in efficiently utilizing working capital.
- In 2021, the working capital turnover was 3.97, which was lower compared to the previous years, suggesting a decrease in efficiency in utilizing working capital.
- In 2020, the working capital turnover was 4.61, showing a slight improvement from the previous year.
- In 2019, the working capital turnover was 9.74, indicating a similar level of efficiency to 2023.

Overall, Paramount Global's working capital turnover has shown variability over the past five years, with some years displaying higher efficiency in generating revenue per unit of working capital compared to others. It is important for the company to analyze the factors contributing to these fluctuations to make informed decisions regarding its working capital management strategies.