Paramount Global Class B (PARA)

Financial leverage ratio

		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
Total assets	US$ in thousands	46,172,000	46,250,000	45,890,000	52,027,000	53,543,000	54,640,000	55,361,000	56,561,000	58,393,000	57,287,000	56,961,000	58,043,000	58,620,000	55,912,000	55,204,000	54,773,000	52,663,000	51,425,000	51,188,000	49,045,000
Total stockholders’ equity	US$ in thousands	16,320,000	16,628,000	16,497,000	21,894,000	22,526,000	21,864,000	21,655,000	21,851,000	23,036,000	22,647,000	22,776,000	22,664,000	22,402,000	20,559,000	20,098,000	19,171,000	15,371,000	14,556,000	13,874,000	13,449,000
Financial leverage ratio		2.83	2.78	2.78	2.38	2.38	2.50	2.56	2.59	2.53	2.53	2.50	2.56	2.62	2.72	2.75	2.86	3.43	3.53	3.69	3.65

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $46,172,000K ÷ $16,320,000K
= 2.83

The financial leverage ratio of Paramount Global Class B has shown a downward trend from March 2020 to December 2024, indicating a decreasing reliance on debt to finance its operations and investments. The ratio decreased from 3.65 in March 2020 to 2.83 in December 2024. This suggests that the company has been reducing its debt levels relative to its equity over the period, which can be viewed positively as it signifies improved financial stability and lower risk.

The lower financial leverage ratio implies that Paramount Global Class B may have strengthened its balance sheet by either paying down debt, raising equity, or a combination of both. This reduction in financial leverage could potentially improve the company's creditworthiness and lower its interest expenses, thereby enhancing profitability and financial flexibility.

It is essential to monitor the financial leverage ratio along with other financial metrics to assess the overall financial health and sustainability of Paramount Global Class B.