Paramount Global Class B (PARA)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -451,000 | 2,342,000 | 6,297,000 | 4,139,000 | 4,146,000 |
| Revenue | US$ in thousands | 28,736,000 | 29,122,000 | 27,728,000 | 24,250,000 | 27,013,000 |
| Operating profit margin | -1.57% | 8.04% | 22.71% | 17.07% | 15.35% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-451,000K ÷ $28,736,000K
= -1.57%
Paramount Global's operating profit margin has shown a decreasing trend over the past five years. The operating profit margin decreased from 16.18% in 2019 to 6.65% in 2023. This decline indicates a reduction in the company's ability to generate profits from its core business operations relative to its revenue. Factors contributing to this decline may include increasing operating expenses, pricing pressures, or a decrease in sales volume. Paramount Global should closely evaluate its cost structure and revenue generation strategies to improve its operating profit margin and ensure long-term profitability.
Peer comparison
Dec 31, 2023