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Paramount Global Financial Strength

: 5 (As of Jun. 2022)
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Paramount Global has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Paramount Global's Interest Coverage for the quarter that ended in Jun. 2022 was 3.71. Paramount Global's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.56. As of today, Paramount Global's Altman Z-Score is 1.58.


Competitive Comparison

For the Entertainment subindustry, Paramount Global's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Paramount Global Financial Strength Distribution

For the Media - Diversified industry and Communication Services sector, Paramount Global's Financial Strength distribution charts can be found below:

* The bar in red indicates where Paramount Global's Financial Strength falls into.



Paramount Global Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Paramount Global's Interest Expense for the months ended in Jun. 2022 was $-230 Mil. Its Operating Income for the months ended in Jun. 2022 was $853 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $17,287 Mil.

Paramount Global's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*853/-230
=3.71

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Paramount Global's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(37 + 17287) / 31116
=0.56

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Paramount Global has a Z-score of 1.58, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.58 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Paramount Global  (NAS:PARA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Paramount Global has the Financial Strength Rank of 5.


Paramount Global Financial Strength Related Terms

Thank you for viewing the detailed overview of Paramount Global's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Paramount Global Business Description

Paramount Global logo
Address
1515 Broadway, New York, NY, USA, 10036
Paramount Global is the rebranded recombination of CBS and Viacom that has created a media conglomerate with global scale. CBS contributed Showtime in addition to its television assets--the CBS television network, 28 local TV stations, and 50% of CW, a joint venture between CBS and WarnerMedia. Viacom brought several leading cable network properties, including Nickelodeon, MTV, BET, Comedy Central, VH1, CMT, and Paramount. Paramount Pictures produces original motion pictures and owns a library of 2,500 films, including the Mission: Impossible and Transformers series. Paramount operates a number of streaming services, most notably Paramount+ and Pluto TV.
Executives
Sumner M. Redstone National Amusements Part B General Trust director, 10 percent owner 846 UNIVERSITY AVENUE NORWORD MA 02062
Chopra Naveen K. officer: EVP, Chief Financial Officer C/O 2160 GOLD STREET SAN JOSE CA 95002
Bakish Robert M director, officer: President and CEO AVID TECHNOLOGY, INC. 75 NETWORK DRIVE BURLINGTON MA 01803
Seligman Nicole director C/O VIACOM INC. 1515 BROADWAY NEW YORK NY 10036
Lea Dede officer: EVP, Pub Pol'y & Gov Relations C/O NEW VIACOM CORP. 1515 BROADWAY NEW YORK NY 10036
Dalimonte Christa A officer: EVP, General Counsel & Secy C/O VIACOM INC. 1515 BROADWAY NEW YORK NY 10036
Nelson Ronald L director
Mchale Judith director C/O RALPH LAUREN CORPORATION 650 MADISON AVENUE NEW YORK NY 10022
Phelps Julia officer: EVP, Chief Comms & Corp Mkting 1515 BROADWAY NEW YORK NY 10036
Gill Charest Katherine officer: EVP, Controller & CAO VIACOM INC. 1515 BROADWAY NEW YORK NY 10036
Phillips Nancy R officer: EVP, Chief People Officer 1515 BROADWAY NEW YORK NY 10036
Sumner M. Redstone National Amusements Trust 10 percent owner 846 UNIVERSITY AVENUE NORWOOD MA 02062
Franco Laura officer: EVP, General Counsel C/O CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Byrnes David F. officer: SVP, Controller and CAO C/O CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Terrell Frederick director 17 STATE STREET NEW YORK NY 10004

Paramount Global Headlines

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