Paramount Global Class B (PARA)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	46,172,000	53,543,000	58,393,000	58,620,000	52,663,000
Operating ROA		-11.41%	-0.84%	4.01%	6.92%	7.86%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-5,269,000K ÷ $46,172,000K
= -11.41%

Paramount Global Class B's operating return on assets (Operating ROA) is a key financial ratio that indicates the company's operating efficiency in generating profits from its assets. The trend analysis of Paramount Global Class B's Operating ROA reveals a declining performance over the years.

On December 31, 2020, Paramount Global Class B's Operating ROA was 7.86%, indicating that the company was able to generate $0.0786 in operating income for every dollar of assets it possessed. However, by December 31, 2024, the Operating ROA had significantly declined to -11.41%, suggesting that the company's operating efficiency had deteriorated, leading to a negative return on its assets.

The declining trend in Operating ROA from 2020 to 2024 is a cause for concern as it indicates that Paramount Global Class B's profitability relative to its assets has decreased over the years. This decline may be attributed to various factors such as inefficient asset utilization, rising operating expenses, or a decrease in operating income.

It is crucial for Paramount Global Class B to address the root causes of this decline in Operating ROA to improve its operational performance and profitability in the future. Management should focus on optimizing asset utilization, controlling costs, and enhancing operational efficiency to reverse the negative trend and enhance shareholder value.