Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
Paramount Global, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to equity ratio
- The debt to equity ratio demonstrates a significant downward trend over the period analyzed. Starting at a high of 4.89 in March 2018, it steadily decreases to around 0.73 by March 2023. This decline indicates a reduction in reliance on debt relative to shareholders’ equity, suggesting improved financial stability and potentially less financial risk.
- Debt to equity ratio (including operating lease liability)
- When including operating lease liabilities, the debt to equity ratio follows a similar but slightly higher trajectory compared to the standard ratio. It decreases from 4.89 in early 2018 to approximately 0.79 in March 2023, reflecting the company's efforts to reduce total liabilities including lease commitments over time.
- Debt to capital ratio
- The debt to capital ratio exhibits a consistent decline throughout the timeframe, starting around 0.83 in March 2018 and falling to about 0.42 by March 2023. This trend signals a decreased proportion of debt within the company's total capital structure, pointing to stronger capitalization and reduced leverage risk.
- Debt to capital ratio (including operating lease liability)
- Including operating lease liabilities, the debt to capital ratio also decreases, from 0.83 in early 2018 to roughly 0.44 by the end of the period. The pattern mirrors the standard debt to capital ratio, reaffirming an overall improved capital structure taking leases into account.
- Debt to assets ratio
- The ratio of debt to assets presents a moderate decrease over the period, declining from 0.47 at the beginning of 2018 to approximately 0.28 in early 2023. This indicates a gradual reduction in the proportion of assets financed by debt, which may enhance asset stability from a creditor's perspective.
- Debt to assets ratio (including operating lease liability)
- This ratio, when including operating lease liabilities, also trends downward but remains higher than the standard ratio. It drops from 0.47 in 2018 to about 0.30 in March 2023, implying a cautious management of overall liabilities against asset base when lease obligations are considered.
- Financial leverage ratio
- The financial leverage ratio shows a marked decline from a peak of 10.38 in March 2018 to around 2.59 in March 2023. Such a significant reduction suggests that the company has decreased its total assets relative to equity, reflecting less dependence on borrowing and possibly a stronger equity position.
- Interest coverage ratio
- The interest coverage ratio data is partially missing for early periods but indicates an initial increase from 5.78 in late 2018 peaking at 6.45 in September 2019, followed by a general decline thereafter. By March 2023, the ratio deteriorates steeply to near zero (0.01), signaling potential difficulties in meeting interest expenses from operating earnings. This sharp decline in interest coverage towards the latest period indicates rising financial stress or reduced earnings capability to service debt.
Debt Ratios
Coverage Ratios
Debt to Equity
Paramount Global, debt to equity calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Paramount stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Total Paramount stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates notable fluctuations and evolving trends in the company's capital structure over the analyzed periods.
- Total Debt
- Total debt remained relatively stable around the 9,700 to 10,200 million USD range from the first quarter of 2018 through the third quarter of 2019. A significant increase occurred during the fourth quarter of 2019, nearly doubling from approximately 9,400 million USD to over 18,700 million USD, remaining elevated through 2020. From 2021 onward, total debt gradually declined, stabilizing near 15,800 million USD by early 2023.
- Total Paramount Stockholders’ Equity
- Stockholders’ equity showed a steady upward trajectory throughout the period. Beginning at around 2,000 million USD in early 2018, equity increased modestly until the fourth quarter of 2019, when it experienced a sharp rise to over 13,200 million USD. This level continued to grow consistently, peaking close to 23,000 million USD in early 2023, before experiencing a slight decrease towards the final period.
- Debt to Equity Ratio
- The debt-to-equity ratio exhibits a marked downward trend over the entire timeline. Initially very high, near 4.9 in early 2018, it decreased to approximately 1.4 by the end of 2019, corresponding with the significant changes in both debt and equity levels. Continuing this trend, the ratio improved further, reaching a low under 0.7 in late 2022 and early 2023, indicating a strengthening equity base relative to debt. A slight uptick to about 0.73 in the final quarter suggests minimal recent leverage increase.
In summary, the data reveals an initial period of high leverage with substantial debt relative to equity, followed by a notable capital restructuring or influx of equity around late 2019. Subsequent periods indicate a strategic reduction in leverage through growth in equity and moderated debt levels, reflecting improved financial stability and capital structure management. The slight increase in the debt-to-equity ratio near the end of the period warrants monitoring but does not significantly undermine the overall positive trend toward a stronger equity position.
Debt to Equity (including Operating Lease Liability)
Paramount Global, debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Noncurrent operating lease liabilities | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Total Paramount stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Paramount stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals several notable trends in the company’s leverage and equity position over the examined periods.
- Total Debt (Including Operating Lease Liability)
- Total debt levels remained relatively stable from March 2018 through September 2019, hovering slightly above 9,700 million US dollars. However, a significant surge occurred in December 2019, when total debt approximately doubled to around 20,600 million US dollars. Following this spike, debt levels fluctuated marginally but tended to decline gradually from mid-2021 onwards, reaching approximately 17,250 million US dollars by March 2023.
- Total Paramount Stockholders’ Equity
- Stockholders’ equity exhibited a consistent upward trajectory throughout the periods analyzed. Starting at roughly 2,000 million US dollars in early 2018, it increased steadily each quarter, with some acceleration noticeable after September 2019. By March 2023, equity levels had risen to approximately 21,850 million US dollars, reflecting a strong expansion in the company’s net asset base.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt-to-equity ratio demonstrated a pronounced downward trend over the entire timeframe. Initially, in early 2018, this ratio was notably high at around 4.89, indicating substantial leverage relative to equity. By late 2019, the ratio decreased significantly to near 1.5, suggesting an improved balance between debt and equity despite the increase in absolute debt levels. This improvement continued unabated, with the ratio reaching a low of approximately 0.75 by the end of 2022, before a slight uptick to 0.79 in the first quarter of 2023. The sustained reduction in this ratio points to a considerable strengthening of the equity base relative to debt obligations.
In summary, despite a sharp increase in total debt towards the end of 2019, the company has steadily enhanced its equity position over the subsequent years. This has resulted in a significant decrease in the debt-to-equity ratio, reflecting a strategic shift toward lower financial leverage and a more robust capitalization structure through March 2023.
Debt to Capital
Paramount Global, debt to capital calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total Paramount stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
Over the examined period, total debt exhibited notable fluctuations and an overall downward trend from the end of 2018 onward. Initially, total debt increased steadily from approximately 9,700 million US dollars in the first quarter of 2018 to over 18,700 million US dollars by the end of 2019. Subsequently, a gradual reduction is observable, with debt levels decreasing to around 15,853 million US dollars by the first quarter of 2023.
Total capital followed a somewhat different trajectory. While it increased from around 11,700 million US dollars in early 2018 up to a peak of nearly 40,000 million US dollars at the end of 2021, it then began a modest decline, settling near 37,700 million US dollars by the first quarter of 2023. This suggests growth in the overall financing base during the middle of the period followed by a stabilization phase with slight contraction.
The debt to capital ratio demonstrated a consistent declining pattern over the full period analyzed. Starting at a relatively high ratio above 0.80 in early 2018, the ratio steadily decreased to approximately 0.42 by the start of 2023. This ratio's downward movement indicates a decreasing reliance on debt relative to the company’s total capital, reflecting an improvement in capital structure with increasing equity or reduction in leverage over time.
In summary, the financial data reveals that after a significant increase in debt through 2019, there has been concerted debt reduction efforts while capital levels grew until late 2021 before slightly contracting. The declining debt to capital ratio underscores a strategic shift towards lower financial leverage and an improved balance between debt and equity financing during the period under review.
- Total Debt
- Increased substantially until end-2019; declined gradually thereafter.
- Total Capital
- Steady growth through 2021 followed by minor contraction towards 2023.
- Debt to Capital Ratio
- Consistent decrease indicating reduced reliance on debt financing over time.
Debt to Capital (including Operating Lease Liability)
Paramount Global, debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Noncurrent operating lease liabilities | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Total Paramount stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The data reveals significant fluctuations and a general trend in the financial leverage of the company over the several-year period analyzed.
- Total debt (including operating lease liability)
- The total debt started at approximately $9.7 billion in the first quarter of 2018 and showed a relatively stable trend throughout 2018 and early 2019, maintaining around $10.2 billion to $10.3 billion. A notable inflection occurred at the end of 2019, with a sharp increase to over $20.6 billion, nearly doubling from prior levels. Following this spike, total debt remained elevated, peaking at around $21.9 billion during mid-2020, before gradually declining through to the first quarter of 2023, when it settled near $17.3 billion. This decline suggests a reduction in leverage after the significant increase in late 2019.
- Total capital (including operating lease liability)
- Total capital began at about $11.7 billion at the start of 2018 and increased moderately through 2018 and early 2019. A dramatic surge was also evident at the end of 2019, with capital swelling to over $33.8 billion, roughly tripling compared to pre-spike levels. This elevated capital base continued to grow, reaching a peak around $41.7 billion in late 2021. However, from early 2022 through the first quarter of 2023, there was a slight downward trend, concluding near $39.1 billion. Overall, total capital showed substantial growth, particularly around late 2019, with a subsequent plateau and minor reduction afterwards.
- Debt to capital (including operating lease liability) ratio
- The debt-to-capital ratio demonstrated a steady decline across the period, indicative of improving leverage ratios. Starting at a high of 0.83 in early 2018, the ratio gradually decreased to 0.78 by the end of 2018 and further dropped to 0.61 at the end of 2019 despite the rise in absolute debt levels. This decline suggests that total capital rose proportionally more than debt during the debt spike. The ratio reached its lowest levels around 0.43 to 0.44 from 2022 through early 2023, reflecting a reduction in relative debt burden. This trend indicates an improvement in the company's financial structure, with lower leverage relative to the overall capital base over time.
In summary, the data depicts a substantial increase in nominal debt and capital at the end of 2019, followed by a gradual reduction in total debt and a slight contraction in total capital in recent quarters. The decreasing debt-to-capital ratio throughout the entire timeline indicates a progressive improvement in leverage management, suggesting enhanced financial stability and a lower relative financial risk exposure as the company moves forward.
Debt to Assets
Paramount Global, debt to assets calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's debt levels, asset base, and leverage over the observed time periods.
- Total Debt
- Total debt exhibited relative stability during the early periods from March 2018 to September 2019, fluctuating slightly around the range of approximately $9.3 billion to $10.2 billion. A significant increase occurred in December 2019, when total debt nearly doubled to above $18.7 billion. Following this jump, debt remained elevated, peaking near $20.1 billion by mid-2020 before gradually declining. From mid-2021 onwards, the debt level consistently decreased, reaching around $15.8 billion by March 2023. The downward trend in debt in the final periods suggests active debt management or repayments.
- Total Assets
- Total assets showed a steady upward trajectory from about $20.6 billion in early 2018 to nearly $24.5 billion by September 2019. Similar to the debt pattern, there was a substantial increase in total assets in December 2019, surging to approximately $49.5 billion, more than doubling the previous levels. Assets continued to grow moderately following this surge, peaking at about $58.6 billion by December 2021. After this peak, total assets experienced slight fluctuations but remained generally stable, ending at approximately $56.6 billion in March 2023. This surge and stabilization in assets post-2019 likely correspond to significant corporate activities such as acquisitions or asset revaluation.
- Debt to Assets Ratio
- The debt to assets ratio decreased steadily from 0.47 in early 2018 to around 0.38 by December 2019, despite the increase in absolute debt and asset values during that period. This indicates that assets grew proportionally faster than debt initially. Following December 2019, the ratio continued its downward trend more noticeably, moving from 0.38 in late 2019 to a low of 0.27 by December 2022. The ratio slightly increased to 0.28 in March 2023 but remained near historical lows. This trend reflects an overall reduction in leverage and an improved capitalization structure, suggesting a strong emphasis on strengthening the balance sheet by increasing asset bases relative to liabilities or reducing debt levels.
Debt to Assets (including Operating Lease Liability)
Paramount Global, debt to assets (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current debt | ||||||||||||||||||||||||||||
| Long-term debt, net of current portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Noncurrent operating lease liabilities | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data over the reported periods reveal several notable trends regarding the company's debt, assets, and leverage ratios.
- Total Debt (including operating lease liability)
- The total debt remained relatively stable around the 9,700 to 10,400 million USD range from the first quarter of 2018 through the third quarter of 2019. A significant increase occurred in the fourth quarter of 2019, with total debt nearly doubling to over 20,600 million USD, where it remained elevated through 2020. From 2021 onwards, a gradual but consistent reduction in total debt is observed, declining steadily from approximately 19,300 million USD in early 2021 to about 17,250 million USD by the first quarter of 2023.
- Total Assets
- Total assets showed moderate growth from approximately 20,500 million USD in early 2018 to nearly 24,500 million USD by the third quarter of 2019. A pronounced surge occurred by the end of 2019, paralleling the debt increase, with total assets more than doubling to nearly 49,500 million USD. This elevated asset level was maintained through 2020 and further increased gradually, peaking above 58,600 million USD at the end of 2021. From early 2022 to the first quarter of 2023, total assets exhibited some volatility but generally declined slightly, ending at approximately 56,500 million USD.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio initially decreased from roughly 0.47 in early 2018 to around 0.42 by the third quarter of 2019. Despite the sharp increases in absolute debt and assets at the end of 2019, this ratio remained relatively stable in the low 0.4 range during 2020, showing the company managed proportional increases in both liabilities and assets. From 2021 onward, there has been a consistent downward trend in the leverage ratio, moving from about 0.35 in early 2021 down to 0.30 by early 2023. This decline indicates an improving balance sheet strength, with asset growth outpacing reductions in debt levels or a more conservative capital structure.
Overall, the data suggest a phase of significant expansion or acquisition near the end of 2019, as evidenced by the doubling of both debt and assets. Following this expansion, the company has taken measures to deleverage progressively while maintaining relatively high asset levels. The decreasing debt to assets ratio in recent periods points to an enhanced capacity to cover liabilities with assets, reflecting a positive trend in financial stability and risk management.
Financial Leverage
Paramount Global, financial leverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
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| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Total Paramount stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Meta Platforms Inc. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
| Take-Two Interactive Software Inc. | ||||||||||||||||||||||||||||
| Walt Disney Co. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Total Paramount stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several significant trends in the company's asset base, equity position, and financial leverage over the observed periods.
- Total Assets
- Total assets demonstrate a generally upward trajectory from March 2018 through March 2023, with values increasing from approximately $20.6 billion to around $56.6 billion. Notably, a substantial jump in total assets occurred at the end of 2019, rising sharply from about $24.5 billion in September 2019 to nearly $49.5 billion in December 2019. Following this spike, total assets maintained a steady increase with minor fluctuations, peaking slightly over $58 billion by December 2022 before a slight decrease to approximately $56.6 billion in March 2023.
- Total Paramount Stockholders’ Equity
- Stockholders’ equity also shows a consistent rise over the timeframe, moving from roughly $2.0 billion in March 2018 to about $21.9 billion by March 2023. Similar to total assets, equity experienced a significant increase at the end of 2019, jumping from around $5.1 billion in September 2019 to over $13.2 billion in December 2019. The upward trend in equity continued steadily thereafter, although the rate of increase appears to slow down slightly in the most recent quarters, with a marginal decrease observed from December 2022 to March 2023.
- Financial Leverage Ratio
- The financial leverage ratio exhibits a clear downward trend throughout the period analyzed, starting at a high of approximately 10.38 in March 2018 and steadily declining to a range near 2.5 by the end of 2022 and into early 2023. This indicates a substantial reduction in leverage over time, signifying less reliance on debt relative to equity in the company's capital structure. The most pronounced decrease occurs between March 2018 and December 2019, with the ratio dropping from over 10 to below 4, stabilizing around the mid-2 range in later quarters.
Overall, the data reflects a strong growth in both total assets and stockholders’ equity, accompanied by a marked reduction in financial leverage. The significant increases in asset base and equity toward the end of 2019 may suggest major corporate actions such as acquisitions or recapitalizations during that period. The continued moderation of the financial leverage ratio implies a strategic shift towards a more equity-financed capital structure, potentially reducing financial risk.
Interest Coverage
Paramount Global, interest coverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
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| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Paramount | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Less: Net earnings from discontinued operations, net of tax | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Comcast Corp. | ||||||||||||||||||||||||||||
| Netflix Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Interest coverage
= (EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022
+ EBITQ2 2022)
÷ (Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022
+ Interest expenseQ2 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) exhibit notable fluctuations over the observed periods. Initially, from March 31, 2018, through December 31, 2018, EBIT values range moderately between 629 and 764 million USD, showing some quarterly variability but remaining positive and relatively stable. A significant increase occurs starting March 31, 2019, peaking at 1,815 million USD, followed by a general declining trend through the end of 2019, dropping sharply to a negative value of -30 million USD in December 2019.
During 2020, EBIT recovers with positive figures consistently above 800 million USD, reaching up to 1,253 million USD by December 31, 2020. This upward trend continues into 2021, with EBIT values fluctuating around the 800 to 1,400 million USD range, culminating in a significant peak of 2,647 million USD in December 2021.
Starting in early 2022, EBIT values decline noticeably, decreasing from 673 million USD in March to 496 million USD in September, followed by a sharp drop to 104 million USD and further to -1,312 million USD by March 31, 2023, marking the lowest point in the observed timeline.
Interest expense remains relatively stable throughout the entire period. Values fluctuate mildly between 115 and 268 million USD, indicating controlled debt servicing costs without significant spikes or reductions. The relative consistency suggests predictable interest obligations.
The interest coverage ratio, calculated as EBIT divided by interest expense, reflects the company's ability to cover interest payments with its operating earnings. This ratio shows a decreasing trend from early 2019 through 2020, dropping from approximately 6.37 to a low near 2.86 before improving to above 4.5 in late 2021, coinciding with the EBIT recovery and peak in December 2021.
However, in 2022 and early 2023, the interest coverage ratio deteriorates sharply, descending from 6.19 at the end of 2021 to virtually 0.01 by March 31, 2023. This significant decline is directly correlated with the substantial reduction in EBIT and the continued steady interest expenses, indicating worsening financial health in terms of earnings sufficiency to meet interest obligations.
Overall, the data highlights a period of volatility with episodic strength in operating earnings, followed by a pronounced downturn beginning in late 2022. The steady interest expense contrasting with a declining EBIT and falling interest coverage ratio raises concerns about the company’s ability to maintain its interest obligations solely through operating income in the most recent quarters.
- Key observations:
- - EBIT showed initial stability followed by a peak in early 2019, a decline in late 2019, recovery through 2020 and 2021, and a significant downturn by early 2023.
- - Interest expense remained relatively stable, indicating consistent debt servicing costs.
- - Interest coverage ratio decreased sharply in late 2019 and 2020, rebounded in 2021, and collapsed by early 2023, reflecting decreased operational earnings capacity relative to interest obligations.