Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Paramount Global, short-term (operating) activity ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Paramount Global receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Paramount Global payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Paramount Global working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Paramount Global number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Paramount Global number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
Paramount Global, receivables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) | |
| Receivables, net | 7,412) | 6,984) | 7,017) | 7,206) | 4,041) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 4.07 | 4.09 | 3.60 | 3.86 | 3.59 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 7.03 | 6.55 | 5.90 | 6.39 | — | |
| Comcast Corp. | 9.58 | 9.69 | 9.03 | 9.65 | — | |
| Meta Platforms Inc. | 8.66 | 8.40 | 7.58 | 7.43 | — | |
| Netflix Inc. | 31.97 | 36.92 | 40.92 | — | — | |
| Walt Disney Co. | 6.54 | 5.04 | 5.15 | 4.49 | — | |
| Receivables Turnover, Sector | ||||||
| Media & Entertainment | 7.94 | 7.41 | 6.90 | — | — | |
| Receivables Turnover, Industry | ||||||
| Communication Services | 8.07 | 7.77 | 7.20 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Receivables turnover = Revenues ÷ Receivables, net
= 30,154 ÷ 7,412 = 4.07
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Paramount Global receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Payables Turnover
Paramount Global, payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating costs and expenses | 19,845) | 17,744) | 14,992) | 17,223) | 9,111) | |
| Accounts payable | 1,403) | 800) | 571) | 667) | 201) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 14.14 | 22.18 | 26.26 | 25.82 | 45.33 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Alphabet Inc. | 24.61 | 18.38 | 15.16 | 12.93 | — | |
| Comcast Corp. | 3.05 | 3.09 | 2.91 | 3.18 | — | |
| Meta Platforms Inc. | 5.06 | 5.55 | 12.54 | 9.37 | — | |
| Netflix Inc. | 28.54 | 20.70 | 23.28 | — | — | |
| Walt Disney Co. | 3.36 | 2.76 | 3.33 | 3.05 | — | |
| Payables Turnover, Sector | ||||||
| Media & Entertainment | 6.66 | 5.90 | 6.03 | — | — | |
| Payables Turnover, Industry | ||||||
| Communication Services | 4.73 | 4.79 | 4.63 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Payables turnover = Operating costs and expenses ÷ Accounts payable
= 19,845 ÷ 1,403 = 14.14
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Paramount Global payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Paramount Global, working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 13,734) | 16,676) | 13,779) | 11,902) | 6,752) | |
| Less: Current liabilities | 11,191) | 9,479) | 8,296) | 9,048) | 4,573) | |
| Working capital | 2,543) | 7,197) | 5,483) | 2,854) | 2,179) | |
| Revenues | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 11.86 | 3.97 | 4.61 | 9.74 | 6.66 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Alphabet Inc. | 2.96 | 2.08 | 1.55 | 1.51 | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | 3.59 | 2.59 | 1.42 | 1.38 | — | |
| Netflix Inc. | 23.67 | — | 12.78 | — | — | |
| Walt Disney Co. | 3,308.88 | 26.13 | 7.58 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Media & Entertainment | 5.15 | 3.53 | 2.48 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Communication Services | 11.82 | 7.57 | 4.32 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Working capital turnover = Revenues ÷ Working capital
= 30,154 ÷ 2,543 = 11.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Paramount Global working capital turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Average Receivable Collection Period
Paramount Global, average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 4.07 | 4.09 | 3.60 | 3.86 | 3.59 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 90 | 89 | 101 | 95 | 102 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Alphabet Inc. | 52 | 56 | 62 | 57 | — | |
| Comcast Corp. | 38 | 38 | 40 | 38 | — | |
| Meta Platforms Inc. | 42 | 43 | 48 | 49 | — | |
| Netflix Inc. | 11 | 10 | 9 | — | — | |
| Walt Disney Co. | 56 | 72 | 71 | 81 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Media & Entertainment | 46 | 49 | 53 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Communication Services | 45 | 47 | 51 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.07 = 90
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Paramount Global number of days of receivables outstanding improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Average Payables Payment Period
Paramount Global, average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 14.14 | 22.18 | 26.26 | 25.82 | 45.33 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 26 | 16 | 14 | 14 | 8 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Alphabet Inc. | 15 | 20 | 24 | 28 | — | |
| Comcast Corp. | 120 | 118 | 125 | 115 | — | |
| Meta Platforms Inc. | 72 | 66 | 29 | 39 | — | |
| Netflix Inc. | 13 | 18 | 16 | — | — | |
| Walt Disney Co. | 109 | 132 | 110 | 120 | — | |
| Average Payables Payment Period, Sector | ||||||
| Media & Entertainment | 55 | 62 | 61 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Communication Services | 77 | 76 | 79 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.14 = 26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Paramount Global number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |