Paramount Global Class B (PARA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 33.46% | 24.50% | 34.19% | 37.93% | 40.71% |
| Operating profit margin | -18.04% | -1.52% | 7.77% | 14.19% | 16.37% |
| Pretax margin | -21.14% | -4.23% | 4.20% | 18.21% | 12.45% |
| Net profit margin | -21.19% | -2.05% | 3.66% | 15.89% | 9.58% |
Paramount Global Class B's profitability ratios have shown a downward trend over the past five years.
1. Gross Profit Margin: The company's gross profit margin decreased from 40.71% in 2020 to 33.46% in 2024. This indicates a decline in the percentage of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin: Paramount Global Class B's operating profit margin declined significantly from 16.37% in 2020 to -18.04% in 2024. This suggests that the company's operating expenses have outpaced its operating income, resulting in negative margins in recent years.
3. Pretax Margin: The pretax margin for the company also deteriorated over the period, dropping from 12.45% in 2020 to -21.14% in 2024. This indicates that the company's profitability before accounting for taxes has worsened significantly.
4. Net Profit Margin: Paramount Global Class B's net profit margin followed a similar downward trajectory, decreasing from 9.58% in 2020 to -21.19% in 2024. This reflects a decline in the company's overall profitability after accounting for all expenses and taxes.
Overall, the profitability ratios of Paramount Global Class B have shown a concerning decline over the past five years, indicating challenges in maintaining profitability and controlling costs. Investors and stakeholders may need to closely monitor the company's financial performance and strategies to mitigate these downward trends.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -11.41% | -0.84% | 4.01% | 6.92% | 7.86% |
| Return on assets (ROA) | -13.41% | -1.14% | 1.89% | 7.75% | 4.60% |
| Return on total capital | -32.58% | -1.48% | 9.54% | -41.74% | 27.18% |
| Return on equity (ROE) | -37.93% | -2.70% | 4.79% | 20.28% | 15.76% |
Paramount Global Class B's profitability ratios show fluctuations over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA decreased from 7.86% in 2020 to 6.92% in 2021, followed by a further decline to 4.01% in 2022. The ratio turned negative in 2023 (-0.84%) and worsened significantly to -11.41% in 2024. This indicates decreasing operational efficiency in generating profits from assets.
2. Return on Assets (ROA):
- The ROA improved from 4.60% in 2020 to 7.75% in 2021 but dropped sharply to 1.89% in 2022. The ratio became negative in 2023 (-1.14%) and deteriorated further to -13.41% in 2024. This suggests declining profitability in relation to the total assets employed.
3. Return on Total Capital:
- The Return on Total Capital was strong at 27.18% in 2020 but turned negative in 2021 (-41.74%). It recovered slightly to 9.54% in 2022 but remained negative in 2023 (-1.48%) and 2024 (-32.58%). This indicates challenges in generating returns on the total capital invested.
4. Return on Equity (ROE):
- The ROE trended positively from 15.76% in 2020 to 20.28% in 2021. However, it declined to 4.79% in 2022 and became negative in 2023 (-2.70%) and 2024 (-37.93%). This reflects a decrease in profitability in relation to the equity investment.
Overall, the profitability ratios of Paramount Global Class B have shown inconsistencies and declining trends, raising concerns about the company's ability to generate returns for both asset providers and equity stakeholders.