Paramount Global Class B (PARA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.32% | 4.73% | 10.85% | 11.51% | 10.59% |
| Operating profit margin | -1.57% | 8.04% | 22.71% | 17.07% | 15.35% |
| Pretax margin | -3.37% | 4.57% | 18.71% | 12.19% | 12.14% |
| Net profit margin | -2.12% | 3.79% | 16.38% | 9.99% | 12.25% |
Paramount Global's profitability ratios demonstrate varying trends over the past five years. The gross profit margin has remained consistently high at 100% across all years, indicating efficient cost management in production. However, the operating profit margin has shown a downward trend, declining from 17.89% in 2020 to 6.65% in 2023, suggesting challenges in controlling operating expenses.
Similarly, the pretax margin has fluctuated significantly, with a negative figure of -5.44% in 2023, indicating potential issues with pre-tax profitability. This marks a substantial deviation from the positive margins seen in the preceding years.
The net profit margin has also experienced fluctuations, with a notable decrease from 15.89% in 2021 to -2.05% in 2023. This suggests a decrease in overall profitability after accounting for all expenses and taxes, which may raise concerns about the company's ability to generate profits available to shareholders.
Overall, Paramount Global's profitability ratios raise questions about its operational efficiency, cost management, and ability to maintain consistent profitability over time. Further analysis of the company's financial performance and strategic direction may be warranted to address these concerns.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.84% | 4.01% | 10.74% | 7.86% | 8.36% |
| Return on assets (ROA) | -1.14% | 1.89% | 7.75% | 4.60% | 6.67% |
| Return on total capital | -0.22% | 9.82% | 27.56% | 25.94% | 32.11% |
| Return on equity (ROE) | -2.70% | 4.79% | 20.28% | 15.76% | 25.05% |
Paramount Global's profitability ratios have shown some fluctuations over the past five years:
1. Operating return on assets (Operating ROA) has been declining gradually from 9.09% in 2019 to 3.68% in 2023. This indicates that the company's operating income generated from its assets has been decreasing over time.
2. Return on assets (ROA) has been inconsistent, ranging from negative figures in 2021 and 2020 to positive values in other years. The negative values in 2021 and 2020 suggest that the company's net income generated from its total assets was not sufficient to cover its expenses during those years.
3. Return on total capital has also shown a declining trend over the years, dropping from 13.93% in 2019 to 4.34% in 2023. This indicates that the company's ability to generate returns from its total capital has been weakening.
4. Return on equity (ROE) has fluctuated significantly, with negative figures in 2023 and 2020 and high positive values in 2019 and 2021. The negative ROE values suggest that the company's net income was not adequate to provide returns to its shareholders in those years.
Overall, Paramount Global's profitability ratios reflect a mixed performance, with some ratios showing decline or inconsistency over the years. It is essential for the company to assess its operational efficiency, asset utilization, and capital structure to improve its profitability in the future.