Paramount Skydance Corporation Class B Common Stock (PSKY)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	29,213,000	29,652,000	30,154,000	28,586,000	25,285,000
Total current assets	US$ in thousands	12,542,000	12,703,000	13,734,000	16,676,000	13,779,000
Total current liabilities	US$ in thousands	9,631,000	9,656,000	11,191,000	9,479,000	8,296,000
Working capital turnover		10.04	9.73	11.86	3.97	4.61

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $29,213,000K ÷ ($12,542,000K – $9,631,000K)
= 10.04

The working capital turnover ratio for Paramount Skydance Corporation Class B Common Stock has exhibited notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the close of 2020, the ratio stood at 4.61, indicating the company's working capital generated approximately 4.61 times in sales. This ratio declined to 3.97 by the end of 2021, reflecting a reduction in efficiency or potential increases in working capital relative to sales.

Between 2021 and 2022, the ratio experienced a significant upward surge, reaching 11.86, which suggests a substantial improvement in the company's working capital efficiency – possibly due to enhanced sales performance, better management of current assets and liabilities, or optimized operational processes.

Following this peak, the ratio dipped to 9.73 at the year-end of 2023, indicating a slight decrease in working capital efficiency but remaining substantially higher than the levels observed in 2020 and 2021. As of December 31, 2024, the ratio marginally increased to 10.04, suggesting a stabilization of working capital management and continued operational efficiency in generating sales from the working capital base.

Overall, the trend highlights a period of dynamic change, with a notable improvement in working capital utilization efficiency from 2021 onward, reaching a peak in 2022, and then stabilizing at a relatively high level into 2024. Such fluctuations could reflect shifts in operational strategy, sales growth, or changes in the balances of current assets and current liabilities.