Paramount Global Class B (PARA)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	18.39	17.66	22.21	29.89	42.51
Days of sales outstanding (DSO)	days	90.37	92.90	91.93	105.62	97.37
Number of days of payables	days	14.30	18.46	11.81	9.71	9.55
Cash conversion cycle	days	94.46	92.10	102.33	125.79	130.33

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 18.39 + 90.37 – 14.30
= 94.46

Paramount Global's cash conversion cycle has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 87.58 days from 89.72 days in 2022. This indicates that Paramount Global was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023 compared to the previous year.

Furthermore, when comparing the cash conversion cycle to earlier years, Paramount Global's performance has improved since 2020 when the cycle was highest at 101.29 days. This suggests that the company has been managing its working capital more effectively over the recent years.

Overall, Paramount Global's decreasing trend in the cash conversion cycle reflects a positive development in its cash flow efficiency, indicating potential improvements in inventory management and accounts receivable collection processes.