Analysis of Debt
Total Debt (Carrying Amount)
Paramount Global, balance sheet: debt
US$ in millions
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).
The data reveals notable fluctuations in the debt structure over the five-year period under review. Total debt experienced a sharp increase between 2018 and 2019, rising from approximately $10.15 billion to $18.72 billion. In subsequent years, however, total debt gradually declined, falling to $15.85 billion by the end of 2022.
Examining the components of total debt provides further insight into the company’s debt management and capital structure. Current debt showed a significant reduction from $687 million at the end of 2018 to just $16 million by the end of 2020, indicating a substantial repayment or refinancing of short-term obligations. This low level of current debt persisted through 2021, but a notable increase occurred in 2022, with current debt rising sharply to $239 million. This uptick may signal a recent change in short-term financing strategy or an increase in working capital needs.
Long-term debt, net of the current portion, constituted the majority of total debt throughout the period. It surged dramatically from approximately $9.47 billion in 2018 to $18 billion in 2019, effectively doubling in a single year. After this peak in 2019, long-term debt experienced a gradual decline over the next three years, falling back to $15.61 billion by the end of 2022. Despite the reduction, the 2022 figure remains significantly higher than the level at the start of the period.
Overall, the debt profile shows a marked increase in leverage between 2018 and 2019, driven primarily by a sharp rise in long-term borrowings. This was followed by a period of gradual deleveraging through reductions in both long-term and current debt, except for a recent increase in current debt during 2022. These patterns suggest active debt management efforts aimed at optimizing the maturity schedule and balancing short-term and long-term liabilities over time.
Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper | —) |
| Notes and debentures | 13,900) |
| Other bank borrowings | 55) |
| Obligations under finance leases | 10) |
| Total debt (fair value) | 13,965) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.88 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 5.16%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 7.88% | 139) | 11) | |
| 7.12% | 35) | 2) | |
| 4.75% | 552) | 26) | |
| 4.00% | 795) | 32) | |
| 3.45% | 124) | 4) | |
| 2.90% | 694) | 20) | |
| 3.38% | 496) | 17) | |
| 3.70% | 494) | 18) | |
| 4.20% | 495) | 21) | |
| 7.88% | 830) | 65) | |
| 4.95% | 1,226) | 61) | |
| 4.20% | 975) | 41) | |
| 5.50% | 427) | 23) | |
| 4.85% | 87) | 4) | |
| 6.88% | 1,071) | 74) | |
| 6.75% | 75) | 5) | |
| 5.90% | 298) | 18) | |
| 4.50% | 45) | 2) | |
| 4.85% | 488) | 24) | |
| 4.38% | 1,130) | 49) | |
| 4.88% | 18) | 1) | |
| 5.85% | 1,233) | 72) | |
| 5.25% | 345) | 18) | |
| 4.90% | 541) | 27) | |
| 4.60% | 590) | 27) | |
| 4.95% | 946) | 47) | |
| 6.25% | 643) | 40) | |
| 6.38% | 989) | 63) | |
| 7.09% | 55) | 4) | |
| Total | 15,836) | 817) | |
| 5.16% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 817 ÷ 15,836 = 5.16%