Paramount Global Class B (PARA)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	25.25	30.04	23.47	14.79	22.94	28.17	24.86	18.26	24.68	27.48	25.32	19.08	30.94	35.43	33.05	27.14	42.78	32.37	34.36	28.17
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	25.25	30.04	23.47	14.79	22.94	28.17	24.86	18.26	24.68	27.48	25.32	19.08	30.94	35.43	33.05	27.14	42.78	32.37	34.36	28.17

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.25 + — – —
= 25.25

The cash conversion cycle is a financial metric that reflects the time it takes a company to convert its investments in inventory and other resources into cash flows from sales. For Paramount Global Class B, the trend in the cash conversion cycle has fluctuated over the periods analyzed.

From March 31, 2020 to December 31, 2024, the cash conversion cycle ranged from a low of 14.79 days to a high of 42.78 days. The cycle decreased from 28.17 days on March 31, 2020 to 18.26 days on March 31, 2023, indicating an improvement in the efficiency of Paramount Global's working capital management. Subsequently, the cycle increased to 30.04 days on September 30, 2024.

Overall, a lower cash conversion cycle is generally favorable as it signifies that Paramount Global is efficiently managing its working capital and converting its resources into cash more quickly. Conversely, a higher cycle suggests potential inefficiencies in managing cash flows and working capital.

It would be important for Paramount Global Class B to further analyze the reasons behind the fluctuations in its cash conversion cycle to optimize its working capital management and enhance its overall financial performance.