Paramount Global Class B (PARA)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-5,317,000	-333,000	2,197,000	-9,351,000	4,178,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	16,320,000	22,526,000	23,036,000	22,402,000	15,371,000
Return on total capital		-32.58%	-1.48%	9.54%	-41.74%	27.18%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-5,317,000K ÷ ($—K + $16,320,000K)
= -32.58%

Paramount Global Class B's return on total capital has exhibited significant fluctuations over the past five years. The ratio stood at 27.18% on December 31, 2020, indicating a strong performance in utilizing capital to generate returns. However, there was a sharp decline to -41.74% on December 31, 2021, suggesting a significant loss relative to the capital employed.

In 2022, the return on total capital improved to 9.54%, indicating a recovery in capital efficiency. Nonetheless, the ratio turned negative again in 2023, with a value of -1.48%, indicating that the company might not be effectively utilizing its capital during that period.

The most recent data point, December 31, 2024, shows a further decrease in the return on total capital to -32.58%, signifying a pronounced decline in the company's ability to generate returns relative to its total capital employed.

Overall, the fluctuating trend in Paramount Global Class B's return on total capital highlights a mix of strong performance, significant losses, temporary recovery, and subsequent declines in capital utilization efficiency over the five-year period. Further analysis and investigation may be needed to understand the underlying reasons for these fluctuations and to implement strategies for improving capital efficiency and overall financial performance.