Paramount Skydance Corporation Class B Common Stock (PSKY)

Short-term

Turnover ratios

The activity ratios for Paramount Skydance Corporation Class B Common Stock over the analyzed period reveal notable trends and variations across key operational metrics, providing insights into inventory management, receivables collection, payables efficiency, and working capital utilization.

Inventory Turnover:
The inventory turnover ratio exhibits significant fluctuation from September 2020 through June 2025. Initial values around 11.27 in September 2020 declined to 8.53 by December 2020 but subsequently increased markedly, reaching a peak near 19.99 in March 2023. After this peak, the ratio fluctuates, notably dropping to approximately 12.09 in September 2024 before rising again to 18.37 in March 2025. The overall trend suggests periods of tightening inventory management interspersed with phases of slower turnover, possibly reflecting seasonal influences, product lifecycle changes, or strategic inventory adjustments.

Receivables Turnover:
The receivables turnover ratio remains relatively stable and steadily increasing after a dip from 5.13 in September 2020 to a low of 3.60 in December 2020. From late 2021 onward, the ratio shows a gradual upward trend, reaching approximately 4.57 in June 2025. This pattern indicates a slight improvement in the efficiency of receivables collection over time, implying that the company is becoming somewhat more effective in converting receivables into cash.

Payables Turnover:
The payables turnover ratio exhibits variability over the period, with a notable decrease from 48.33 in September 2020 to a low of 14.14 in December 2022. Subsequently, the ratio shows a recovery, climbing back to a high of 27.97 in March 2024. Fluctuations suggest shifts in the company’s payment practices, possibly influenced by changes in supplier terms, cash flow considerations, or strategic payment timing. The elevated ratios in recent periods suggest that the company may be settling payables more promptly or that supplier payment terms have become more favorable.

Working Capital Turnover:
The working capital turnover ratio displays considerable variation, initially decreasing from 6.60 in September 2020 to a low of approximately 3.84 in March 2021. Afterward, it generally trends upward, peaking at 22.09 in March 2023 during a period of substantial efficiency. Post-peak, the ratio declines again, with values stabilizing around 8.49 to 11.23 in late 2024 and early 2025. The fluctuating pattern indicates varying intensity in utilizing working capital to generate sales, with periods of intensified efficiency followed by reductions, possibly due to seasonal factors, operational adjustments, or shifts in sales volumes and receivables.

Summary:
Overall, the ratios reflect a dynamic operational environment with periods of increased efficiency in inventory management and receivables collection, alongside fluctuating payables and working capital utilization. The peak in inventory turnover and working capital efficiency around early 2023 suggests a period of optimized asset management, whereas recent declines in some ratios may indicate strategic shifts or market conditions impacting operational performance.

These trends should be analyzed further in conjunction with financial statements and external factors to better understand underlying causes and implications for the company's operational health and liquidity position.

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Average number of days

The activity ratios for Paramount Skydance Corporation Class B Common Stock reveal notable trends in operational efficiency over the period from September 2020 through June 2025, focusing on days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables.

Days of Inventory on Hand (DOH):
Initially, the company's inventory holding time exhibited fluctuations, with a notable increase from approximately 32.37 days in September 2020 to a peak of 42.78 days at the end of 2020. This upward trend indicates a slowdown in inventory turnover during this period. Subsequently, a substantial reduction began in late 2020 and into 2021, with DOH declining to 27.14 days by March 2021. The most significant decrease was observed between March 2022 and March 2023, where inventory days further decreased to approximately 14.79 days, reflecting enhanced inventory management efficiency or changes in inventory levels. After this period, DOH increased moderately, reaching roughly 30.19 days in September 2024 before declining again to around 25.38 days in the end of 2024 and persisting in the vicinity of 19.87 to 28.26 days in 2025. Overall, the trend demonstrates a movement towards more rapid inventory turnover in recent years.

Days of Sales Outstanding (DSO):
The DSO figures reveal that the company generally experienced a high level of receivables outstanding, with a peak of approximately 102.51 days at the end of March 2021. Following this high, a downward trend is observed, especially from June 2021 onward, with DSO decreasing to under 80 days by September 2022, and further stabilizing around 80 to 86 days through 2023 and into mid-2024. Notably, by June 2025, DSO declined to approximately 79.85 days, indicating improved collection efficiency or changes in credit policies. This reduction suggests a gradual shift toward faster receivables turnover, contributing positively to cash flow management.

Number of Days of Payables:
The payables period exhibits variability, with initial low levels around 7.55 days (September 2020) and an increasing trend peaking at approximately 25.80 days in December 2022. This indicates that the company was taking longer to settle its payables during this period, possibly reflecting extended credit terms negotiated with suppliers or strategic delaying of payments. Post-2022, there is a consistent decrease, with payables days reducing to about 13.05 days by March 2024. The most recent figures from June and September 2025 show a stabilization around 15 days, suggesting a return to more standard payable terms.

Summary of Trends:
- The company's inventory turnover has improved significantly over the analyzed period, moving from over a month of inventory on hand toward less than three weeks, indicating increased operational efficiency or inventory management improvements.
- Collection periods related to receivables have shortened from over 102 days to below 80 days, signaling enhanced receivables collection processes.
- Payment periods have increased initially, then declined to more typical durations, reflecting perhaps strategic payment timing decisions or negotiations, and culminating in a balanced payable period.

Overall, the ratios depict a trajectory toward a more liquid and operationally efficient position, characterized by quicker inventory turnover, faster collection of receivables, and a balanced approach to payable management.

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Long-term

The analysis of Paramount Skydance Corporation Class B Common Stock’s long-term activity ratios reveals the following insights:

For the Fixed Asset Turnover ratio, data are unavailable across all reporting periods, indicating either absence or non-reporting of fixed asset data within this timeframe.

Conversely, the Total Asset Turnover ratio exhibits notable fluctuations over the analyzed period. Beginning at 0.69 on September 30, 2020, the ratio declined sharply to approximately 0.48 by December 31, 2020, and remained stable at that level through subsequent quarters up to December 31, 2021. From the first quarter of 2022 onward, there is a consistent upward trend: the ratio increased incrementally, reaching 0.52 by June 30, 2022, and maintaining that level through the end of 2022. Further steady growth is observed from March 2023 onward, with the ratio reaching 0.58. The upward trend continues into 2024, peaking around 0.64 by June 30, 2024. In subsequent periods, the ratio stabilizes slightly, maintaining values between 0.62 and 0.64 up to June 30, 2025.

Overall, the data depict an improvement in the company’s efficiency in utilizing its total assets to generate sales over time. The increase in the Total Asset Turnover ratio suggests enhanced operational performance or more effective asset management, particularly from early 2022 onward. The absence of Fixed Asset Turnover data limits specific insights into the company's fixed asset utilization, but the positive trend in total asset efficiency indicates a broad-based improvement in asset productivity.