Paramount Global Class B (PARA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -6,190,000 | -608,000 | 1,104,000 | 4,543,000 | 2,422,000 |
| Total stockholders’ equity | US$ in thousands | 16,320,000 | 22,526,000 | 23,036,000 | 22,402,000 | 15,371,000 |
| ROE | -37.93% | -2.70% | 4.79% | 20.28% | 15.76% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-6,190,000K ÷ $16,320,000K
= -37.93%
Paramount Global Class B's return on equity (ROE) has exhibited some fluctuations over the years based on the provided data. The ROE increased from 15.76% as of December 31, 2020, to 20.28% as of December 31, 2021, indicating improved performance and higher profitability. However, there was a significant decline in ROE to 4.79% as of December 31, 2022, and further dropped to -2.70% by December 31, 2023, reflecting a decrease in the company's ability to generate profits from shareholders' equity.
The most concerning trend occurred as of December 31, 2024, where the ROE drastically plummeted to -37.93%. This negative ROE indicates that the company is generating net losses relative to shareholders' equity, raising questions about financial viability and operational efficiency. Paramount Global Class B should evaluate its financial strategies and operational performance to reverse this downward trend and improve profitability in the future.
Peer comparison
Dec 31, 2024