Paramount Global Class B (PARA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,460,000	2,885,000	6,267,000	2,984,000	632,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	9,656,000	11,191,000	9,479,000	8,296,000	9,048,000
Cash ratio		0.25	0.26	0.66	0.36	0.07

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,460,000K + $—K) ÷ $9,656,000K
= 0.25

Paramount Global's cash ratio has fluctuated over the past five years, ranging from 0.20 to 0.79. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, the cash ratio stands at 0.43, which is an improvement compared to the previous year. This suggests that the company has increased its cash reserves relative to its short-term liabilities. However, the cash ratio is still lower than the peak observed in 2021, where it reached 0.79.

Overall, Paramount Global's cash ratio has exhibited variability, indicating fluctuations in its liquidity position over the years. It is important for the company to closely monitor its cash reserves and manage its short-term obligations effectively to ensure financial stability and operational flexibility.