Name: Paramount Global (NASDAQ:PARA) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Paramount Global, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings, Paramount and noncontrolling interests	1,214)	4,631)	2,701)	3,339)	1,960)
Net earnings from discontinued operations, net of tax	(379)	(162)	(117)	(38)	—)
Net earnings from continuing operations	835)	4,469)	2,584)	3,301)	1,960)
Depreciation and amortization	405)	390)	430)	443)	223)
Amortization of content costs and participation and residuals expense	14,951)	13,352)	11,045)	12,554)	—)
Deferred tax provision (benefit)	(106)	90)	122)	(769)	44)
Stock-based compensation	172)	192)	274)	291)	146)
Net (gain) loss on dispositions	(56)	(2,343)	(214)	(498)	1)
Net (gains) losses from investments	9)	(47)	(206)	(113)	—)
Loss on extinguishment of debt	120)	128)	126)	—)	—)
Equity in loss of investee companies, net of tax and distributions	207)	96)	34)	58)	58)
(Increase) decrease in receivables	(180)	179)	(68)	(256)	(254)
(Increase) decrease in inventory and related program, participation, and residuals liabilities	(17,164)	(16,584)	(12,170)	(14,215)	(830)
Increase (decrease) in accounts payable and other liabilities	596)	760)	188)	297)	(114)
Increase (decrease) in pension and postretirement benefit obligations	(44)	(61)	(20)	16)	(47)
Increase (decrease) in income taxes	272)	265)	2)	160)	213)
Other, net	(159)	(51)	88)	(39)	25)
Change in assets and liabilities	(16,679)	(15,492)	(11,980)	(14,037)	(1,007)
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities	(977)	(3,634)	(369)	(2,071)	(535)
Net cash flow provided by (used for) operating activities	(142)	835)	2,215)	1,230)	1,425)
Investments	(254)	(193)	(59)	(171)	(124)
Capital expenditures	(358)	(354)	(324)	(353)	(165)
Acquisitions, net of cash acquired	—)	(54)	(147)	(399)	(31)
Proceeds from dispositions	95)	3,028)	593)	756)	—)
Other investing activities	(1)	(25)	—)	14)	(5)
Net cash flow (used for) provided by investing activities	(518)	2,402)	63)	(153)	(325)
Proceeds from (repayments of) commercial paper borrowings, net	—)	—)	(698)	25)	(5)
Proceeds from issuance of debt	1,138)	58)	4,375)	492)	—)
Repayment of debt	(3,140)	(2,230)	(2,909)	(910)	—)
Dividends paid on preferred stock	(58)	(30)	—)	—)	—)
Dividends paid on common stock	(631)	(617)	(600)	(595)	(276)
Proceeds from issuance of preferred stock	—)	983)	—)	—)	—)
Proceeds from issuance of common stock	—)	1,672)	—)	—)	—)
Purchase of Company common stock	—)	—)	(58)	(57)	(586)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation	(31)	(110)	(93)	(56)	(59)
Proceeds from exercise of stock options	—)	408)	5)	15)	27)
Payments to noncontrolling interests	(218)	(235)	(59)	(91)	—)
Other financing activities	(41)	(51)	(53)	(39)	(22)
Net cash flow used for financing activities	(2,981)	(152)	(90)	(1,216)	(921)
Net cash flow provided by operating activities from discontinued operations	361)	118)	79)	—)	1)
Net cash flow used for investing activities from discontinued operations	(8)	(7)	(7)	(2)	(23)
Net cash flow from discontinued operations	353)	111)	72)	(2)	(22)
Effect of exchange rate changes on cash and cash equivalents	(94)	(48)	25)	(1)	—)
Net increase (decrease) in cash, cash equivalents and restricted cash	(3,382)	3,148)	2,285)	(142)	157)
Cash, cash equivalents and restricted cash at beginning of year	6,267)	3,119)	834)	976)	285)
Cash, cash equivalents and restricted cash at end of year	2,885)	6,267)	3,119)	834)	442)

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 financial trajectory of Paramount Global between 2018 and 2022 is characterized by a significant deterioration in operational cash generation, culminating in a deficit by the end of the period. While the company maintained a strong cash position through 2021, bolstered by strategic financing and asset dispositions, the 2022 fiscal year shows a sharp contraction in liquidity and a shift toward negative net cash flow from operating activities.

Operating Cash Flow Analysis: Net cash flow provided by operating activities exhibited high volatility, peaking at 2,215 million US$ in 2020 before declining to a negative 142 million US$ in 2022. This decline is primarily driven by an escalating commitment to content. Amortization of content costs and participation expenses increased steadily from 12,554 million US$ in 2019 to 14,951 million US$ in 2022. Furthermore, the cash outflows related to inventory and related program liabilities grew substantially, reaching a peak negative impact of 17,164 million US$ in 2022. These figures indicate that operational expenditures for content acquisition and production are outpacing the cash generated from continuing operations.
Investing Activities and Capital Allocation: Investing activities were generally cash-consumptive, with the exception of 2020 and 2021. A notable anomaly occurred in 2021, where net cash flow from investing activities surged to 2,402 million US$, driven largely by 3,028 million US$ in proceeds from dispositions. Capital expenditures remained relatively stable, fluctuating between 165 million US$ in 2018 and 358 million US$ in 2022. The overall trend suggests a strategy of maintaining infrastructure while leveraging asset sales to offset operational cash deficits during peak growth or transition phases.
Financing Strategy and Debt Management: Financing activities show a consistent pattern of cash outflow, which accelerated dramatically in 2022 to 2,981 million US$. The company maintained a steady dividend payout to common stockholders, ranging from 595 million US$ to 631 million US$ annually from 2019 to 2022. A significant liquidity event occurred in 2021, involving the issuance of common and preferred stock totaling approximately 2,655 million US$. However, this was countered by aggressive debt repayment, specifically in 2020 (2,909 million US$) and 2022 (3,140 million US$), indicating a volatile balance between equity raising and deleveraging.
Liquidity and Overall Cash Position: The company's cash and restricted cash balance grew from 442 million US$ at the end of 2018 to a peak of 6,267 million US$ at the end of 2021. This accumulation was not the result of operating efficiency but rather the combination of stock issuances and asset dispositions. By the end of 2022, the cash balance dropped sharply to 2,885 million US$, reflecting a net decrease of 3,382 million US$ during the year. This decline aligns with the simultaneous shift to negative operating cash flow and increased debt repayments.
Impact of Discontinued Operations: Cash flow from discontinued operations transitioned from a net drag in 2018 (-22 million US$) to a meaningful source of liquidity by 2022, providing 353 million US$. This suggests that the divestment or wind-down of certain business segments has become an increasingly important contributor to the company's total cash position as continuing operations faced headwinds.

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