Paramount Global Class B (PARA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -5,269,000 | -451,000 | 2,342,000 | 4,056,000 | 4,139,000 |
| Revenue | US$ in thousands | 29,213,000 | 29,652,000 | 30,154,000 | 28,586,000 | 25,285,000 |
| Operating profit margin | -18.04% | -1.52% | 7.77% | 14.19% | 16.37% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-5,269,000K ÷ $29,213,000K
= -18.04%
Paramount Global Class B's operating profit margin has exhibited a downward trend over the past five years. In December 2020, the operating profit margin stood at a healthy 16.37%, indicating that the company was efficient in generating operating profits relative to its revenue. However, this margin dropped to 14.19% by December 2021, suggesting a slight decrease in operational efficiency.
The trend continued downward significantly in the following years, with the operating profit margin decreasing further to 7.77% in December 2022, and then turning negative with margins of -1.52% in December 2023 and -18.04% in December 2024. These negative margins indicate that Paramount Global Class B may have incurred operating losses during those periods, where operating expenses exceeded operating profits.
Overall, the declining operating profit margin trend raises concerns about the company's operational performance and efficiency. It is essential for Paramount Global Class B to address cost management issues and implement strategies to improve profitability in order to sustain long-term financial health.
Peer comparison
Dec 31, 2024