Paramount Global Class B (PARA)

Liquidity ratios

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
Current ratio 1.32 1.26 1.17 1.12 1.23 1.31 1.47 1.58 1.76 1.66 1.78 1.78 1.66 1.69 1.56 1.22 1.32 1.52 1.65 1.50
Quick ratio 0.99 0.87 0.83 0.85 0.92 0.97 1.14 1.29 1.40 1.28 1.42 1.47 1.21 1.30 1.18 0.91 0.87 0.94 1.04 1.03
Cash ratio 0.25 0.18 0.16 0.19 0.26 0.33 0.42 0.55 0.66 0.54 0.63 0.63 0.36 0.40 0.29 0.07 0.07 0.05 0.06 0.11

Paramount Global's liquidity ratios provide insights into its ability to meet short-term obligations and manage its current liabilities.

The current ratio has shown a general trend of fluctuation over the past eight quarters, ranging from 1.12 to 1.47. Despite some variability, the ratio has generally remained above 1, indicating the company's ability to cover its short-term obligations with its current assets. However, the downward trend from Q1 2022 to Q4 2023 may suggest a slight weakening in Paramount Global's liquidity position.

The quick ratio, which is a more conservative measure of liquidity as it excludes inventory from current assets, has also displayed fluctuations. While the ratio has stayed above 1 in most quarters, suggesting that the company has an acceptable level of liquidity without relying on inventory, there are still periods where it fell below this threshold. This indicates that Paramount Global's ability to meet its short-term obligations without relying on potentially illiquid inventory has been somewhat mixed.

The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has shown a declining trend from 0.67 in Q1 2022 to 0.43 in Q4 2023. This decreasing trend suggests that Paramount Global may have reduced cash reserves relative to its current liabilities over the quarters, potentially indicating a decrease in its ability to quickly cover short-term obligations.

Overall, while Paramount Global's liquidity ratios generally indicate a satisfactory ability to meet its short-term obligations, the downward trends in the quick and cash ratios highlight some potential liquidity challenges that the company may need to address in order to maintain a strong financial position.

See also:

Paramount Global Class B Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 94.46 96.96 94.59 91.32 92.10 89.92 94.89 95.38 102.38 101.45 108.63 112.58 122.11 133.75 154.23 153.44 228.13 134.03 139.23 136.32

The cash conversion cycle of Paramount Global has been fluctuating over the past eight quarters. In Q1 2023, the company's cash conversion cycle peaked at 90.34 days before slightly improving in Q2 2023 to 87.64 days. However, the cycle increased again in Q3 2023 to 84.02 days before increasing further to 87.58 days in Q4 2023.

Comparing year-over-year performance, the company's cash conversion cycle in Q4 2023 was slightly higher than in Q4 2022 (89.72 days). Despite this increase, it is worth noting that Paramount Global's cash conversion cycle was relatively lower in Q3 2022 (80.09 days) and Q2 2022 (85.47 days).

Overall, Paramount Global's cash conversion cycle has shown some variability, indicating fluctuations in the company's ability to efficiently convert its resources into cash within a given period. Further analysis of the underlying factors affecting this cycle and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and liquidity management.