Paramount Global Class B (PARA)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.30 | 1.27 | 1.30 | 1.29 | 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 |
| Quick ratio | 0.28 | 0.26 | 0.26 | 0.26 | 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 |
| Cash ratio | 0.28 | 0.26 | 0.26 | 0.26 | 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 |
Paramount Global Class B has maintained a relatively stable current ratio over the years, ranging between 1.12 to 1.78. This indicates the company's ability to cover its short-term obligations with its current assets. However, the decreasing trend in the current ratio from 1.78 in March 2021 to 1.30 in December 2024 may raise concerns about its liquidity position.
In terms of the quick ratio, the company shows a declining trend from 0.63 in March 2021 to 0.28 in December 2024. This suggests that Paramount Global Class B may struggle to meet its immediate short-term liabilities with its most liquid assets as the quick ratio has fallen below 1.
The cash ratio, which measures a company's ability to cover immediate liabilities with its cash and cash equivalents, also follows a downward trend from 0.63 in March 2021 to 0.28 in December 2024. This signals a potential risk in meeting short-term obligations solely with available cash on hand.
Overall, Paramount Global Class B's liquidity ratios indicate a weakening liquidity position over the years, as evidenced by the declining current, quick, and cash ratios. Management should closely monitor this trend to ensure the company remains capable of meeting its short-term financial obligations.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Paramount Global Class B has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates better efficiency in managing cash flows and working capital.
The trend analysis of Paramount Global Class B's cash conversion cycle reveals that there have been fluctuations over the years. Initially, the company had a relatively stable cash conversion cycle, but there were notable increases in the cycle length in December 31, 2020, and September 30, 2021. However, the company managed to improve its efficiency in managing cash flows by reducing the cash conversion cycle in subsequent periods.
From March 31, 2022, to December 31, 2024, there is a noticeable downward trend in the cash conversion cycle, indicating improvements in managing working capital and cash flows more efficiently. The company has effectively reduced the time it takes to convert investments into cash, reflecting stronger liquidity management and potentially better operating performance.
Overall, the analysis of Paramount Global Class B's cash conversion cycle suggests that the company has made efforts to enhance its cash flow efficiency and working capital management over the years, as evidenced by the decreasing trend in the cash conversion cycle from March 31, 2022, onwards. This trend is positive for the company's financial health and indicates improved operational effectiveness in converting investments into cash.