Paramount Global Class B (PARA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 53,543,000 | 58,393,000 | 58,620,000 | 52,663,000 | 49,585,000 |
| Total stockholders’ equity | US$ in thousands | 22,526,000 | 23,036,000 | 22,402,000 | 15,371,000 | 13,207,000 |
| Financial leverage ratio | 2.38 | 2.53 | 2.62 | 3.43 | 3.75 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $53,543,000K ÷ $22,526,000K
= 2.38
Paramount Global's financial leverage ratio has exhibited a decreasing trend over the five-year period from 2019 to 2023. The ratio decreased from 3.75 in 2019 to 2.38 in 2023. This indicates that the company has been gradually decreasing its reliance on debt to finance its operations and investments.
A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which may indicate a stronger financial position and lower financial risk. Paramount Global's decreasing trend in the financial leverage ratio reflects a potentially improved financial stability and flexibility.
However, it is important to note that a very low financial leverage ratio could also indicate underutilization of debt financing, which might limit the company's ability to take advantage of growth opportunities. Overall, Paramount Global's decreasing financial leverage ratio trend suggests a strategic approach to managing its capital structure and financial risk over the analyzed period.
Peer comparison
Dec 31, 2023