Paramount Global Class B (PARA)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 53,543,000 | 58,393,000 | 58,620,000 | 52,663,000 | 49,585,000 |
| Operating ROA | -0.84% | 4.01% | 10.74% | 7.86% | 8.36% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-451,000K ÷ $53,543,000K
= -0.84%
Paramount Global's operating return on assets (operating ROA) has declined over the past five years. In 2019, the operating ROA was 9.09%, which gradually decreased to 3.68% by the end of 2023. This downward trend indicates that the company's ability to generate operating profits from its assets has weakened over time.
A decreasing operating ROA can be a concerning sign as it suggests that the company is becoming less efficient in utilizing its assets to generate operating income. This could be due to various reasons such as increasing operating expenses, declining revenue, or asset underperformance.
Investors and analysts may want to further investigate the reasons behind this declining trend in Paramount Global's operating ROA to assess the company's operational efficiency and financial health. Additional factors such as changes in industry dynamics, competitive pressures, or management decisions may have contributed to this trend and should be thoroughly analyzed to make informed investment decisions.
Peer comparison
Dec 31, 2023