Paramount Global Class B (PARA)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.83 | 2.38 | 2.53 | 2.62 | 3.43 |
Paramount Global Class B maintains a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been recorded at 0.00 for the years ranging from December 31, 2020, to December 31, 2024. This demonstrates the company's ability to finance its operations primarily through equity rather than debt.
Furthermore, the financial leverage ratio has shown a declining trend over the same period, starting at 3.43 on December 31, 2020, and decreasing to 2.83 by December 31, 2024. This reduction in financial leverage indicates that Paramount Global Class B has been gradually relying less on debt to fund its activities, which is a positive sign for investors and creditors as it suggests lower financial risk and greater financial stability.
Overall, the solvency ratios of Paramount Global Class B paint a picture of a financially sound company with a prudent approach to capital structure management and a healthy balance between debt and equity in its capitalization.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -6.18 | -0.36 | 2.36 | -9.48 | 4.05 |
Paramount Global Class B's interest coverage ratio has exhibited fluctuations over the years, based on the provided data.
As of December 31, 2020, the interest coverage ratio stood at 4.05, indicating that the company generated sufficient operating income to cover its interest expenses.
However, by the end of 2021, the interest coverage ratio significantly declined to -9.48. A negative interest coverage ratio suggests that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health.
In 2022, the interest coverage ratio improved to 2.36, but it remained below the ideal threshold of 2.5 or higher, indicating that Paramount Global Class B's ability to meet interest payments was still relatively constrained.
By December 31, 2023, the interest coverage ratio further deteriorated to -0.36, highlighting continued financial challenges in meeting interest obligations.
At the end of 2024, the interest coverage ratio worsened to -6.18, indicating a significant decline in the company's ability to cover its interest expenses.
Overall, the trend in Paramount Global Class B's interest coverage ratio raises concerns about its financial stability and ability to service its debt obligations. Further analysis of the company's financial performance and strategic initiatives may be warranted to address these challenges.