Paramount Global Class B (PARA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.83 | 23.05 | 24.68 | 30.94 | 42.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 26.83 | 23.05 | 24.68 | 30.94 | 42.78 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.83 + — – —
= 26.83
Paramount Global Class B has shown a decreasing trend in its cash conversion cycle over the past five years. The cash conversion cycle, which reflects the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales, decreased from 42.78 days as of December 31, 2020, to 26.83 days as of December 31, 2024.
This improvement indicates that the company has been more efficient in managing its working capital, reducing the time it takes to sell products, collect receivables, and pay suppliers. A decreasing cash conversion cycle usually signifies better liquidity and operating efficiency. Paramount Global Class B's decreasing trend in the cash conversion cycle suggests that the company may have optimized its inventory management, streamlined its sales process, or improved its accounts receivable collection methods over the years.
Peer comparison
Dec 31, 2024