Paramount Global Class B (PARA)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	815,000	1,098,000	1,382,000	366,000	-480,000	-385,000	-481,000	588,000	2,626,000	4,783,000	5,137,000	5,544,000	6,297,000	4,610,000	4,690,000	4,750,000	4,145,000	5,017,000	4,559,000	3,968,000
Revenue (ttm)	US$ in thousands	29,213,000	28,867,000	29,269,000	30,072,000	29,652,000	30,145,000	29,928,000	30,091,000	30,154,000	30,023,000	29,717,000	28,502,000	28,586,000	26,811,000	26,317,000	26,028,000	25,285,000	35,601,000	32,780,000	30,314,000
Operating profit margin		2.79%	3.80%	4.72%	1.22%	-1.62%	-1.28%	-1.61%	1.95%	8.71%	15.93%	17.29%	19.45%	22.03%	17.19%	17.82%	18.25%	16.39%	14.09%	13.91%	13.09%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $815,000K ÷ $29,213,000K
= 2.79%

The operating profit margin of Paramount Global Class B has exhibited fluctuating trends over the analyzed period, with some notable shifts in the company's operational efficiency. Starting at 13.09% in March 2020, the operating profit margin increased steadily, reaching its peak at 22.03% by December 2021. This upward trajectory suggested improving profitability and effective cost management within the business.

However, the positive trend reversed from March 2022 onwards, with the operating profit margin declining to 2.79% by December 2024. This significant decrease indicated challenges in maintaining profitability, possibly due to factors such as rising costs, declining revenues, or inefficiencies in operations.

The sharp decline in the operating profit margin from March 2023 to June 2023, where the margin turned negative, highlighted a period of financial strain for Paramount Global Class B. The company experienced a slight recovery in profitability from March 2024 onwards, but the margin remained relatively low compared to previous periods.

Overall, the fluctuating operating profit margin of Paramount Global Class B reflects the dynamic nature of its financial performance, with periods of growth alongside challenges that impacted profitability. The company may need to focus on strategies to improve operational efficiency and cost control to enhance its profitability in the future.