Paramount Global Class B (PARA)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	-608,000	-1,101,000	-1,165,000	-447,000	1,104,000	3,141,000	3,448,000	4,065,000	4,543,000	3,295,000	3,372,000	2,817,000	2,422,000	1,354,000	1,369,000	1,865,000	3,308,000	4,453,000	4,709,000	4,686,000
Total stockholders’ equity	US$ in thousands	22,526,000	21,864,000	21,655,000	21,851,000	23,036,000	22,647,000	22,776,000	22,664,000	22,402,000	20,559,000	20,098,000	19,171,000	15,371,000	14,556,000	13,874,000	13,449,000	13,207,000	5,052,000	4,753,000	4,349,000
ROE		-2.70%	-5.04%	-5.38%	-2.05%	4.79%	13.87%	15.14%	17.94%	20.28%	16.03%	16.78%	14.69%	15.76%	9.30%	9.87%	13.87%	25.05%	88.14%	99.07%	107.75%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-608,000K ÷ $22,526,000K
= -2.70%

Paramount Global's return on equity (ROE) has exhibited a declining trend over the past year, with negative ROE figures in the most recent quarters. In Q4 2023, the ROE stands at -2.70%, followed by -5.04% in Q3 2023 and -5.38% in Q2 2023. This indicates that the company's profitability in relation to its equity has deteriorated significantly.

Comparing the latest figures with those from the same period a year ago, there has been a notable decrease in performance. In Q4 2022, Paramount Global achieved a ROE of 4.79%, which then declined to 13.87% in Q3 2022, 15.14% in Q2 2022, and 17.94% in Q1 2022. The consistent decrease in ROE suggests that the company may be facing challenges in generating sustainable profits relative to its equity base.

Overall, Paramount Global's ROE performance indicates a concerning downward trend, which may raise questions regarding the company's operational efficiency and financial health. Further analysis and investigation into the factors contributing to the declining ROE are warranted to understand the underlying causes and potential strategies for improvement.