Paramount Global Class B (PARA)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-5,317,000	-5,009,000	-4,765,000	458,000	-365,000	-589,000	-599,000	288,000	2,232,000	4,681,000	5,019,000	5,486,000	6,175,000	4,729,000	4,764,000	4,721,000	4,457,000	5,181,000	5,376,000	5,601,000
Interest expense (ttm)	US$ in thousands	860,000	867,000	890,000	915,000	920,000	928,000	927,000	917,000	931,000	942,000	954,000	967,000	986,000	1,013,000	1,029,000	1,049,000	1,031,000	1,379,000	1,234,000	1,086,000
Interest coverage		-6.18	-5.78	-5.35	0.50	-0.40	-0.63	-0.65	0.31	2.40	4.97	5.26	5.67	6.26	4.67	4.63	4.50	4.32	3.76	4.36	5.16

December 31, 2024 calculation

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

Based on the data provided, the interest coverage ratio for Paramount Global Class B fluctuated over the period from March 31, 2020, to December 31, 2024.

The interest coverage ratio started at 5.16 on March 31, 2020, indicating that the company generated enough earnings to cover its interest expenses 5.16 times over. However, the ratio showed a decreasing trend in the following quarters, reaching a low of -6.18 on December 31, 2024.

A ratio below 1 suggests that the company's operating income was not sufficient to cover its interest expenses, which could raise concerns about its financial stability and ability to meet debt obligations.

It is crucial for Paramount Global Class B to closely monitor and manage its interest coverage ratio to ensure it remains at a healthy level to avoid potential financial distress or insolvency. Further analysis of the company's financial performance and strategies may be needed to address the declining trend in interest coverage.