Paramount Skydance Corporation Class B Common Stock (PSKY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,661,000	2,460,000	2,885,000	6,267,000	2,984,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	9,631,000	9,656,000	11,191,000	9,479,000	8,296,000
Cash ratio		0.28	0.25	0.26	0.66	0.36

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,661,000K + $—K) ÷ $9,631,000K
= 0.28

The cash ratio of Paramount Skydance Corporation Class B Common Stock has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the cash ratio stood at 0.36, indicating that the company held approximately 36 cents in cash and cash equivalents for every dollar of current liabilities. This ratio increased significantly in 2021 to 0.66, more than doubling the preceding year's figure, suggesting an improved liquidity position with a higher proportion of readily available cash relative to current liabilities.

However, a decline occurred in 2022, with the cash ratio decreasing sharply to 0.26. This reduction indicates a significant drop in the company's cash holdings relative to its current liabilities, potentially signaling a concern regarding liquidity health or changes in cash management or operational cash flows. The ratio remained relatively stable in 2023 at 0.25, showing slight contraction compared to 2022, and persisted at this level into 2024, which rose marginally to 0.28.

Overall, the company's cash ratio has demonstrated considerable variability over this four-year period. The initial elevation in 2021 suggests a period of heightened liquidity, but the subsequent decline and stabilization at lower levels indicate a reduction in the company's cash buffer relative to current liabilities. This trend underscores the importance of further analysis to understand the underlying causes of these fluctuations, such as changes in working capital management, cash flow generation, or strategic financial decisions that may influence liquidity positioning.