Paramount Global Class B (PARA)

Working capital 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
Revenue (ttm)	US$ in thousands	28,736,000	29,213,000	29,008,000	29,145,000	29,122,000	29,107,000	28,810,000	27,682,000	27,713,000	26,732,000	26,194,000	25,729,000	25,130,000	25,127,000	22,476,000	20,279,000	18,416,000	15,569,000	15,617,000	15,352,000
Total current assets	US$ in thousands	12,703,000	12,711,000	12,459,000	12,657,000	13,734,000	13,524,000	14,182,000	15,354,000	16,676,000	14,798,000	15,254,000	15,487,000	13,779,000	13,157,000	12,439,000	10,406,000	11,902,000	6,273,000	6,336,000	6,732,000
Total current liabilities	US$ in thousands	9,656,000	10,050,000	10,670,000	11,295,000	11,191,000	10,326,000	9,636,000	9,723,000	9,479,000	8,913,000	8,586,000	8,701,000	8,296,000	7,763,000	7,985,000	8,531,000	9,048,000	4,122,000	3,843,000	4,492,000
Working capital turnover		9.43	10.98	16.21	21.40	11.45	9.10	6.34	4.92	3.85	4.54	3.93	3.79	4.58	4.66	5.05	10.82	6.45	7.24	6.26	6.85

December 31, 2023 calculation

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

The working capital turnover of Paramount Global has shown fluctuating trends over the past eight quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In Q1 2022, the working capital turnover was at its lowest at 5.06, suggesting that the company generated $5.06 in sales for every $1 of working capital invested. This indicates a relatively lower level of efficiency in utilizing working capital during that period.

However, the ratio improved in subsequent quarters, reaching its highest level in Q1 2023 at 22.09, indicating a significant improvement in efficiency in utilizing working capital to generate sales revenue. This implies that the company was able to generate $22.09 in sales for every $1 of working capital invested.

The working capital turnover decreased in the following quarters but maintained levels above 9, indicating consistent efficiency in utilizing working capital to generate sales revenue.

Overall, the working capital turnover ratio of Paramount Global has shown variability but generally demonstrates a trend of improving efficiency in utilizing working capital to drive sales revenue over the analyzed period.