Paramount Global Class B (PARA)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.38 | 2.53 | 2.62 | 3.43 | 3.75 |
Paramount Global's solvency ratios show a consistent trend of improvement over the past five years, indicating a strengthening financial position in terms of its ability to meet its long-term financial obligations.
The Debt-to-assets ratio has remained relatively stable at around 0.27 to 0.30 over the last three years, indicating that the company has been successful in managing its debt levels relative to its total assets.
The Debt-to-capital ratio has shown a declining trend, decreasing from 0.59 in 2019 to 0.39 in 2023. This signifies that Paramount Global has reduced its reliance on debt capital in funding its operations and investments, which is a positive indicator of financial health.
The Debt-to-equity ratio has also improved significantly, decreasing from 1.42 in 2019 to 0.65 in 2023. This improvement demonstrates that the company has reduced its debt levels relative to its equity, indicating a lower level of financial risk and a stronger equity position.
The Financial leverage ratio has followed a similar trend, decreasing from 3.75 in 2019 to 2.38 in 2023. This indicates that Paramount Global has been successful in reducing its financial leverage and reliance on debt financing, which can lead to increased financial stability and flexibility.
Overall, the trend of decreasing debt ratios and improving solvency ratios suggests that Paramount Global is in a better financial position to weather economic downturns and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -0.05 | 2.43 | 6.26 | 3.87 | 4.41 |
Paramount Global's interest coverage has shown a declining trend over the past five years. The interest coverage ratio decreased from 4.96 in 2019 to 2.06 in 2023. This indicates that the company's ability to cover its interest payments with its operating income has weakened over time. A lower interest coverage ratio may signal increasing financial risk as the company may have a higher burden of interest expenses relative to its earnings. It is crucial for Paramount Global to closely monitor and address this trend to ensure its financial health and stability in the long run.