Paramount Global Class B (PARA)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-608,000	1,104,000	4,543,000	2,422,000	3,308,000
Total assets	US$ in thousands	53,543,000	58,393,000	58,620,000	52,663,000	49,585,000
ROA		-1.14%	1.89%	7.75%	4.60%	6.67%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-608,000K ÷ $53,543,000K
= -1.14%

Paramount Global's return on assets (ROA) has displayed a fluctuating trend over the past five years. In 2023, the company experienced a negative ROA of -1.14%, indicating that it generated a minimal return on its assets compared to the prior year. This decline is concerning as it suggests the company may be struggling to efficiently utilize its assets to generate profits.

The ROA for the prior year, 2022, stood at 1.89%, indicating an improvement in asset utilization and profitability compared to 2023. However, the ROA was significantly higher in 2021 at 7.75%, reflecting a period of strong asset productivity and profitability for Paramount Global.

In 2020, the company's ROA was 4.60%, showing a moderate decline from the peak in 2021 but still indicating a relatively healthy return on assets. The ROA further decreased to 6.68% in 2019, showing a slight dip in profitability compared to the two preceding years.

Overall, Paramount Global's ROA has been inconsistent, with significant fluctuations across the five-year period. The negative ROA in 2023 raises concerns about the company's ability to effectively generate profits from its assets, highlighting the importance of monitoring asset management strategies to improve future financial performance.