Paramount Skydance Corporation Class B Common Stock (PSKY)

Short-term

Turnover ratios

The analysis of Paramount Skydance Corporation Class B Common Stock activity ratios over the specified period reveals several noteworthy trends and patterns:

Inventory Turnover: The ratio exhibits a consistent upward trend from 8.53 in 2020 to a peak of 15.83 in 2023. This indicates an increasing efficiency in managing and selling inventory, with the company able to convert its inventory into sales more frequently over time. The slight decline to 14.38 in 2024 suggests a modest reduction in inventory turnover rate, but it remains significantly higher than the initial figure in 2020, reflecting sustained improvements in inventory management.

Receivables Turnover: This ratio shows a gradual increase from 3.60 in 2020 to 4.22 in 2024. The trend suggests that the company has become more effective at collecting accounts receivable, reducing the time it takes to convert receivables into cash. The incremental growth indicates enhanced credit and collections policies or improved cash flow management.

Payables Turnover: The ratio demonstrates fluctuation over the period, decreasing from 26.26 in 2020 to a low of 14.14 in 2022, followed by a partial recovery to 21.57 in 2024. The decline in 2022 implies the company was paying its suppliers less frequently, potentially indicating strained liquidity or strategic extension of payables. The subsequent increase suggests a possible stabilization or tightening of payment practices, improving the company's liquidity position.

Working Capital Turnover: After declining from 4.61 in 2020 to 3.97 in 2021, the ratio then exhibits a significant increase to 11.86 in 2022, followed by a slight decrease to around 9.73 in 2023 and 10.04 in 2024. The sharp rise in 2022 indicates a substantial increase in sales relative to working capital, signifying enhanced operational efficiency. The subsequent stabilization at higher levels compared to 2020 and 2021 suggests improved utilization of working capital to generate sales.

Overall, the ratios point to a general trend of increased operational efficiency and asset management effectiveness over the analyzed period. The company demonstrates improved inventory and receivables management, with some variability in payables practices reflecting possible strategic or liquidity considerations. The notable rise in working capital turnover from 2021 to 2022 indicates a significant enhancement in the utilization of working capital to support sales growth, though slight fluctuations afterward suggest ongoing normalizations.

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Average number of days

The activity ratios for Paramount Skydance Corporation Class B Common Stock, specifically focusing on inventory management, receivables, and payables, reveal notable trends over the period from 2020 to 2024.

Days of Inventory on Hand (DOH):
The DOH metric exhibits a consistent decline from 42.78 days in 2020 to 24.68 days in 2022. This indicates a significant improvement in inventory turnover, reflecting increased efficiency in inventory management and possibly a faster sales cycle. After reaching a low of 24.68 days in 2022, the figure stabilized slightly, rising modestly to 25.38 days in 2024, but remaining substantially lower than the 2020 level.

Days of Sales Outstanding (DSO):
Similarly, the DSO demonstrates a downward trend, decreasing from 101.29 days in 2020 to 89.72 days in 2022. This suggests enhanced receivables collection processes and a shorter average collection period. The DSO continued its slight decline into 2024, reaching 86.46 days, indicating ongoing improvements in cash flow management and customer credit policies.

Number of Days of Payables:
The payables activity ratio shows some variability but an overall increasing trend initially, peaking at 25.80 days in 2022 from 13.90 days in 2020, implying that the company was extending its payment terms during this period. In the subsequent years, the number of days of payables decreased to 17.93 days in 2023 and further to 16.92 days in 2024. This reduction signifies a shortening of days payable, possibly reflecting tighter cash management or a strategic adjustment in supplier relationships.

Summary:
Over the observed period, Paramount Skydance's efficiency in managing inventory and receivables has improved markedly, with both DOH and DSO decreasing significantly. Conversely, the days of payables initially extended, then contracted slightly toward the latter part of the period. These activity ratios collectively suggest enhanced operational efficiency, improved liquidity management, and a possible shift toward more aggressive cash flow strategies during the years leading up to 2024.

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Long-term

The long-term activity ratios for Paramount Skydance Corporation Class B Common Stock indicate a focus on overall asset utilization efficiency over the specified period. The Fixed Asset Turnover ratio is consistently reported as unavailable across all years from December 31, 2020, through December 31, 2024, suggesting either a lack of fixed assets or the absence of sufficient data to compute this metric for the period.

In contrast, the Total Asset Turnover ratio exhibits a gradual upward trend over the five-year span. Starting at 0.48 on December 31, 2020, the ratio increases progressively each year, reaching 0.63 by December 31, 2024. This improvement indicates that the company has been progressively utilizing its total assets more efficiently to generate sales or revenue. The increase from 0.48 to 0.63 reflects enhanced asset productivity, possibly resulting from better operational management, strategic asset deployment, or possible asset base reductions that do not impair sales generation.

Overall, while fixed asset turnover figures remain unavailable, the rising total asset turnover ratio suggests a positive trend in long-term asset utilization efficiency by Paramount Skydance Corporation over the observed period.