Paramount Global Class B (PARA)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-6,026,000	-5,725,000	-5,595,000	-481,000	-1,009,000	-1,095,000	-1,159,000	-441,000	1,074,000	3,141,000	3,448,000	4,065,000	4,543,000	3,295,000	3,372,000	2,817,000	2,422,000	2,578,000	2,282,000	2,241,000
Total stockholders’ equity	US$ in thousands	16,320,000	16,628,000	16,497,000	21,894,000	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
ROE		-36.92%	-34.43%	-33.92%	-2.20%	-4.48%	-5.01%	-5.35%	-2.02%	4.66%	13.87%	15.14%	17.94%	20.28%	16.03%	16.78%	14.69%	15.76%	17.71%	16.45%	16.66%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-6,026,000K ÷ $16,320,000K
= -36.92%

Paramount Global Class B's return on equity (ROE) has shown fluctuations over the past few years, starting at 16.66% in March 2020 and peaking at 20.28% in December 2021. However, there has been a general downward trend in ROE since then.

The ROE declined to 15.14% in June 2022 and further decreased to 4.66% in December 2022. The trend worsened significantly in the following periods, with negative ROE figures reported from March 2023 to December 2024. The ROE hit its lowest point at -36.92% by December 2024.

The negative ROE figures suggest that Paramount Global Class B's net income is not sufficient to cover shareholder equity, indicating potential financial distress or inefficiency in the utilization of equity. It is essential for the company to address the factors contributing to the declining ROE and work towards improving profitability and shareholder returns to maintain investor confidence and financial stability.