Paramount Global Class B (PARA)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-5,317,000	-333,000	2,197,000	-9,351,000	4,178,000
Interest expense	US$ in thousands	860,000	920,000	931,000	986,000	1,031,000
Interest coverage		-6.18	-0.36	2.36	-9.48	4.05

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $-5,317,000K ÷ $860,000K
= -6.18

The interest coverage ratio for Paramount Global Class B has fluctuated over the years.

As of December 31, 2020, the interest coverage ratio was 4.05, indicating that the company generated enough earnings before interest and tax to cover its interest payments comfortably.

However, by December 31, 2021, the interest coverage ratio decreased significantly to -9.48, suggesting that the company's earnings were not sufficient to cover its interest expenses, raising concerns about its financial health and ability to meet debt obligations.

In the following years, the interest coverage ratio continued to show inconsistency. By December 31, 2022, the ratio improved to 2.36, showing a partial recovery in the company's ability to cover interest costs.

This improvement was short-lived as the ratio dropped to -0.36 by December 31, 2023, indicating a further deterioration in the company's financial performance and its ability to service its debt.

Lastly, as of December 31, 2024, the interest coverage ratio remained negative at -6.18, highlighting ongoing challenges for Paramount Global Class B in meeting its interest obligations from its operating income.

Overall, the trend in the interest coverage ratio for Paramount Global Class B reflects financial instability and points towards potential difficulties in managing its debt burden.