Paramount Skydance Corporation Class B Common Stock (PSKY)

The liquidity ratios of Paramount Skydance Corporation Class B Common Stock over the specified periods indicate a generally diminishing trend in the company's short-term liquidity position, with some fluctuations observed across the timeframe from September 2020 through June 2025.

Current Ratio Analysis:
The current ratio, which measures the company's ability to meet short-term obligations with its current assets, started at 1.69 in September 2020. It experienced a slight decline over the subsequent periods, reaching its lowest point at 1.12 in March 2023. Following this low, there was a gradual recovery, with the ratio reaching 1.39 by June 2025. Throughout the analyzed period, the current ratio remained above 1, suggesting that the company generally maintained sufficient current assets to cover its current liabilities, though the declining trend indicates a potential tightening of liquidity buffer.

Quick Ratio Analysis:
The quick ratio, a more stringent measure excluding inventory from current assets, showed a similar downward trend. It commenced at 1.29 in September 2020 but decreased over time, notably falling below 1.0 starting around September 2022, to a low of approximately 0.83 in June 2023. Since then, the ratio has risen modestly toward approximately 1.03 as of March 2025, indicating some improvement in the company's ability to meet short-term obligations with its most liquid assets.

Cash Ratio Analysis:
The cash ratio, which considers only cash and cash equivalents relative to current liabilities, exhibited a declining trend from 0.40 in September 2020 down to its lowest point of 0.16 in June 2023. Post this period, the ratio has displayed a slight upward drift, reaching approximately 0.31 in June 2025. The consistently low levels of the cash ratio reflect limited liquidity in cash terms, illustrating that a significant portion of current liabilities is not covered solely by cash or cash equivalents.

Overall Observations:
The liquidity position of Paramount Skydance Corporation Class B Common Stock has shown signs of gradual weakening over the evaluated period, especially evident in the quick and cash ratios. Despite the reduction in liquidity measures, the current ratio remains above 1, suggesting that the company retains sufficient overall current assets to meet its short-term liabilities but with decreasing margins and increasing reliance on less liquid assets. The trend warrants attention as sustained declines in these ratios could impact the company's ability to absorb financial shocks or fund operational needs promptly.

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Additional liquidity measure

The cash conversion cycle (CCC) of Paramount Skydance Corporation Class B Common Stock demonstrates notable fluctuations over the analyzed period from September 30, 2020, through June 30, 2025. Initially, the CCC stood at approximately 96.04 days in September 2020, indicating the time it takes for the company to convert its investments in inventory and receivables into cash, net of its payables.

Between September 2020 and December 2020, the cycle lengthened significantly to approximately 130.17 days, suggesting an increase in the duration required to convert resources into cash, potentially due to heightened collection periods or inventory buildup during that quarter. Subsequently, the CCC exhibited a declining trend over the next several quarters, reaching a low of approximately 87.82 days by March 2023. This reduction indicates an improvement in operational efficiency, potentially reflecting faster inventory turnover, quicker receivables collection, or extended payment terms with suppliers.

Post-March 2023, the CCC experienced slight ups and downs, fluctuating around the 90-day mark. For example, it increased marginally to 92.88 days by March 2024 and remained close to this level through June 2025, with minor variations. These oscillations suggest a relatively steady state in working capital management, with no significant deterioration or improvement beyond the established cycle duration.

Overall, the data indicates that Paramount Skydance has successfully shortened its cash conversion cycle from a peak of over 130 days to a more normalized range of around 87 to 93 days over the observed period. This trend reflects enhanced efficiency in managing receivables, inventory, and payables, which is generally favorable for its liquidity profile and operational agility. However, the moderate fluctuations in recent periods suggest an ongoing balancing act between operational efficiencies and external factors influencing working capital dynamics.