Paramount Global Class B (PARA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -49,000 | -646,000 | -650,000 | 282,000 | 2,262,000 | 4,681,000 | 5,019,000 | 5,486,000 | 6,175,000 | 4,803,000 | 4,802,000 | 4,493,000 | 3,988,000 | 2,688,000 | 2,790,000 | 3,309,000 | 4,241,000 | 6,116,000 | 6,179,000 | 5,907,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -0.22% | -2.95% | -3.00% | 1.29% | 9.82% | 20.67% | 22.04% | 24.21% | 27.56% | 23.36% | 23.89% | 23.44% | 25.94% | 18.47% | 20.11% | 24.60% | 32.11% | 121.06% | 130.00% | 135.82% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-49,000K ÷ ($—K + $22,526,000K)
= -0.22%
Paramount Global's return on total capital has shown a fluctuating trend over the past eight quarters. In Q4 2023, the return on total capital was 4.34%, indicating a moderate return on the company's total capital employed. This was an improvement from the negative returns seen in the previous two quarters, Q3 2023 (-1.76%) and Q2 2023 (-1.49%).
However, the Q4 2023 return was lower than the returns reported in the earlier quarters of Q4 2022 (6.86%), Q3 2022 (7.02%), Q2 2022 (7.70%), and Q1 2022 (8.19%). These earlier periods reflected higher returns on the total capital, suggesting that the company was more effective in generating profits from its total capital base.
Overall, Paramount Global's return on total capital has shown some volatility, with fluctuations in performance over the quarters. It is important for the company to focus on improving its return on total capital consistently to enhance its profitability and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2023