Paramount Global Class B (PARA)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 3.75 | 4.84 | 5.01 | 5.54 |
Paramount Global's solvency ratios reveal important insights into the company's financial health and its ability to meet its long-term obligations.
The debt-to-assets ratio measures the proportion of the company's assets financed by debt. Paramount Global has shown consistency in maintaining a relatively low debt-to-assets ratio, hovering around 0.28 to 0.29 in recent quarters. This indicates that the company relies more on equity financing rather than debt to fund its operations, which can be seen as a positive sign of financial stability.
The debt-to-capital ratio reflects the extent to which a company is reliant on debt to finance its operations. Paramount Global's debt-to-capital ratio has remained relatively steady between 0.39 and 0.42, implying that a significant portion of the company's capital structure is debt-financed. While this level of leverage is common in many industries, it suggests a moderate level of financial risk for the company.
The debt-to-equity ratio compares the amount of debt to shareholder equity. Paramount Global's debt-to-equity ratio shows a slight increase from 0.69 to 0.74 over the last quarter, indicating a higher level of debt relative to equity. This may raise concerns about the company's financial leverage and ability to weather economic downturns or volatile market conditions.
The financial leverage ratio measures the proportion of a company's assets that are financed by debt. Paramount Global's financial leverage ratio has shown a slight upward trend, increasing from 2.53 to 2.59 over the past year. This indicates that the company is increasingly relying on debt to support its operations, which could potentially pose risks in terms of interest payments and financial stability.
Overall, while Paramount Global has maintained relatively stable solvency ratios, the slight increases in debt-to-equity and financial leverage ratios suggest a growing reliance on debt financing. This may warrant further analysis and monitoring to ensure the company's financial sustainability and ability to meet its long-term financial obligations.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.05 | -0.70 | -0.70 | 0.31 | 2.43 | 4.97 | 5.26 | 5.67 | 6.26 | 4.74 | 4.67 | 4.28 | 3.87 | 2.68 | 2.82 | 3.44 | 4.41 | 4.36 | 4.85 | 5.13 |
Paramount Global's interest coverage has shown fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio improved to 2.06, indicating the company generated enough operating income to cover its interest expenses more than twice over. However, in Q3 2023 and Q2 2023, the interest coverage ratio was negative, suggesting that the company's operating income was insufficient to cover its interest expenses. This raises concerns about the company's ability to meet its debt obligations during these periods.
Looking further back, in Q1 2023, the interest coverage ratio improved to 0.74, indicating a slight increase in the company's ability to cover its interest expenses. Comparing these recent results to the same periods in 2022, Paramount Global exhibited stronger interest coverage ratios in Q4 2022, Q3 2022, Q2 2022, and Q1 2022, all above 3. This suggests that the company's ability to cover its interest expenses was more robust in the previous year.
Overall, Paramount Global's interest coverage has been inconsistent, with some quarters showing strong coverage and others indicating a lack of sufficient operating income to meet interest obligations, highlighting the importance of monitoring the company's financial performance and debt repayment capabilities.