Paramount Skydance Corporation Class B Common Stock (PSKY)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	25.38	23.05	24.68	30.94	42.78
Days of sales outstanding (DSO)	days	86.46	87.58	89.72	89.18	101.29
Number of days of payables	days	16.92	17.93	25.80	16.46	13.90
Cash conversion cycle	days	94.91	92.70	88.60	103.66	130.17

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.38 + 86.46 – 16.92
= 94.91

The cash conversion cycle (CCC) of Paramount Skydance Corporation Class B Common Stock has demonstrated notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024.

Initially, the CCC was recorded at 130.17 days at the end of 2020, indicating that, on average, the company took approximately 130 days to convert its investments in inventory and other resources into cash flows from sales. This relatively high figure suggests a longer operating cycle, potentially due to prolonged inventory turnover, extended accounts receivable periods, or both.

By the end of 2021, the CCC decreased significantly to 103.66 days, reflecting an improvement in working capital efficiency—possibly attributable to faster receivables collection, shorter inventory holding periods, or a combination thereof. This reduction indicates that the company became more efficient in its liquidity management during this period.

The downward trend continued into 2022, with the CCC declining further to 88.60 days. The continued reduction points to ongoing enhancements in operational or receivables management, reducing the time it takes to cycle cash through the company's operational processes.

However, in 2023, the CCC experienced an increase to 92.70 days, representing a slight elongation in the cycle. This could be indicative of temporary disruptions, changes in credit policies, inventory management adjustments, or market factors affecting receivables and payables.

By 2024, the CCC rose marginally again to 94.91 days, continuing the upward trajectory but remaining below the 2020 level. This moderate increase might reflect minor adjustments in operational efficiencies or strategic shifts in credit and inventory policies, rather than fundamental deteriorations.

Overall, the trend from 2020 through 2024 indicates a significant initial improvement in cash conversion efficiency, followed by a stabilization period with slight fluctuations. The gradual reduction and subsequent stabilization suggest efforts by the company to optimize cash flow management, with periodic adjustments likely influenced by market or internal operational factors.