Paramount Global Class B (PARA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -49,000 | 2,262,000 | 6,175,000 | 3,988,000 | 4,241,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 22,526,000 | 23,036,000 | 22,402,000 | 15,371,000 | 13,207,000 |
| Return on total capital | -0.22% | 9.82% | 27.56% | 25.94% | 32.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-49,000K ÷ ($—K + $22,526,000K)
= -0.22%
Paramount Global's return on total capital has shown a declining trend over the past five years, decreasing from 13.93% in 2019 to 4.34% in 2023. This indicates a decreasing efficiency in generating profits relative to the total capital employed in the business. A decreasing trend in return on total capital may suggest inefficiencies in managing capital investments or declining profitability relative to the amount of capital employed. Paramount Global should further analyze the factors contributing to this decline in order to address any underlying issues and improve their return on total capital in the future.
Peer comparison
Dec 31, 2023