Paramount Global Class B (PARA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -5,317,000 | -5,009,000 | -4,765,000 | 458,000 | -365,000 | -589,000 | -599,000 | 288,000 | 2,232,000 | 4,681,000 | 5,019,000 | 5,486,000 | 6,175,000 | 4,729,000 | 4,764,000 | 4,721,000 | 4,457,000 | 5,181,000 | 5,376,000 | 5,601,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -32.58% | -30.12% | -28.88% | 2.09% | -1.62% | -2.69% | -2.77% | 1.32% | 9.69% | 20.67% | 22.04% | 24.21% | 27.56% | 23.00% | 23.70% | 24.63% | 29.00% | 35.59% | 38.75% | 41.65% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 a declining trend over the period from March 31, 2020 to December 31, 2024. The ratio started at a relatively high level of 41.65% in March 2020 and gradually decreased to 32.58% by December 2024. The return on total capital peaked in March 2020 and has been on a downward trajectory since then, with intermittent fluctuations.
The decreasing trend in return on total capital may indicate challenges in generating profits relative to the amount of capital employed in the business. A lower return on total capital could signal inefficiencies in capital utilization, declining profitability, or ineffective management of assets and liabilities.
Investors and stakeholders may view the declining return on total capital as a cause for concern regarding the company's financial performance and efficiency in generating returns. Further analysis would be required to understand the specific factors contributing to this trend and to assess the company's strategies for improving its return on total capital in the future.
Peer comparison
Dec 31, 2024