Paramount Skydance Corporation Class B Common Stock (PSKY)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	20,555,000	22,388,000	19,845,000	17,744,000	14,992,000
Payables	US$ in thousands	953,000	1,100,000	1,403,000	800,000	571,000
Payables turnover		21.57	20.35	14.14	22.18	26.26

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $20,555,000K ÷ $953,000K
= 21.57

The payables turnover ratio for Paramount Skydance Corporation Class B Common Stock demonstrates notable fluctuations over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio decreased from 26.26 times in 2020 to 22.18 times in 2021, indicating a slight moderation in how quickly the company was settling its accounts payable obligations relative to its cost of goods sold or operating expenses. This downward trend continued more sharply in 2022, with the ratio declining to 14.14 times, suggesting that the company was taking longer to pay its suppliers or vendors during that year.

Following this decline, the ratio experienced a rebound in the subsequent years. In 2023, the payables turnover increased back to 20.35 times, indicating an acceleration in settling payables compared to the previous year, albeit not reaching the 2020 levels. This upward movement continued into 2024, with the ratio reaching 21.57 times, further signifying an improvement in the company's accounts payable management.

Overall, the trend reflects an initial decrease in the payables turnover ratio from 2020 to 2022, possibly pointing to extended payment periods or changes in procurement or cash flow strategies. The subsequent increase in 2023 and 2024 suggests a shift toward more rapid settlement of payables, which could be indicative of improved liquidity, negotiated tighter payment terms, or changes in the company's operational or strategic approach to vendor payments.