Paramount Global Class B (PARA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,460,000 | 2,885,000 | 6,267,000 | 2,984,000 | 632,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 7,115,000 | 7,412,000 | 6,984,000 | 7,017,000 | 7,206,000 |
| Total current liabilities | US$ in thousands | 9,656,000 | 11,191,000 | 9,479,000 | 8,296,000 | 9,048,000 |
| Quick ratio | 0.99 | 0.92 | 1.40 | 1.21 | 0.87 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,460,000K
+ $—K
+ $7,115,000K)
÷ $9,656,000K
= 0.99
Paramount Global's quick ratio has fluctuated over the past five years, ranging from 1.00 in 2019 to 1.52 in 2021. The quick ratio measures the company's ability to meet its short-term financial obligations using its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.
In 2023, Paramount Global's quick ratio improved to 1.17, which is a positive sign as it indicates the company's ability to cover its short-term obligations has strengthened compared to the previous year.
However, it is important to note that while a quick ratio above 1 is generally considered healthy, the optimal level can vary depending on the industry and specific circumstances of the company. Therefore, it is essential to consider other financial metrics and industry benchmarks to have a comprehensive understanding of Paramount Global's overall liquidity position.
Peer comparison
Dec 31, 2023