Paramount Skydance Corporation Class B Common Stock (PSKY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.64% | 24.50% | 34.19% | 37.93% | 40.71% |
| Operating profit margin | -18.04% | -1.52% | 7.77% | 14.19% | 16.37% |
| Pretax margin | -21.14% | -4.23% | 4.20% | 18.21% | 12.45% |
| Net profit margin | -21.19% | -2.05% | 3.66% | 15.89% | 9.58% |
The profitability ratios for Paramount Skydance Corporation Class B Common Stock over the period from December 31, 2020 to December 31, 2024 reflect a notable decline in profitability metrics, particularly in the most recent years.
Gross Profit Margin has exhibited a decreasing trend, declining from 40.71% in 2020 to 24.50% in 2023. Although an increase to 29.64% was observed in 2024, the margin remains significantly below the 2020 levels, indicating a sustained reduction in the company's ability to retain gross profits relative to its sales.
Operating Profit Margin similarly deteriorated from 16.37% in 2020 to a negative -1.52% in 2023. The negative margin in 2023 signifies operational losses, and the further decline to -18.04% in 2024 underscores increasing operational challenges.
Pre-tax Margin followed a comparable trajectory, declining from 12.45% in 2020 to a negative -4.23% in 2023, and further to -21.14% in 2024. The shift into negative territory indicates that the company is not only experiencing operational losses but also failing to generate pre-tax profits.
Net Profit Margin reflects a similar pattern, decreasing from 9.58% in 2020 to 15.89% in 2021—attributable possibly to a temporary improvement or one-time gains—then sharply declining to 3.66% in 2022. The subsequent years show negative margins, with -2.05% in 2023 and a substantial -21.19% in 2024, indicating overall net losses that increase in magnitude.
Overall, the data suggests a downward trend in profitability ratios for Paramount Skydance Corporation Class B, with the company moving from profitable operations in 2020 and 2021 to sustained losses, particularly in 2023 and 2024. This decline may be indicative of operational difficulties, increased costs, or changes in market conditions impacting the company's profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -11.41% | -0.84% | 4.01% | 6.92% | 7.86% |
| Return on assets (ROA) | -13.41% | -1.14% | 1.89% | 7.75% | 4.60% |
| Return on total capital | -32.58% | -1.48% | 9.54% | -41.74% | 27.18% |
| Return on equity (ROE) | -37.93% | -2.70% | 4.79% | 20.28% | 15.76% |
The profitability ratios of Paramount Skydance Corporation Class B Common Stock exhibit a concerning downward trend over the period from December 2020 to December 2024. The Operating Return on Assets (Operating ROA) experienced a steady decline from 7.86% in 2020 to a negative value of -11.41% in 2024, indicating a diminishing efficiency in core operating activities and a shift toward unprofitable operations.
Similarly, the overall Return on Assets (ROA) declined markedly from 4.60% in 2020 to -13.41% in 2024. This progression suggests that the company's profitability relative to its total assets has deteriorated significantly, impacting overall asset utilization effectiveness.
Return on Total Capital demonstrated volatility in 2021 with a sharp negative of -41.74%, followed by recovery to 9.54% in 2022. However, this measure also declined thereafter to -32.58% in 2024, reflecting an increasing inability to generate profits relative to the invested capital and a potential increase in capital costs or impairments.
Return on Equity (ROE) showed an initial increase from 15.76% in 2020 to 20.28% in 2021, indicating improved profitability attributable to shareholders during that period. However, subsequent years witnessed a substantial decrease, culminating in a negative ROE of -37.93% in 2024. This signifies that the company has been generating losses attributable to shareholders, eroding equity value over time.
Overall, these ratios collectively reveal a deteriorating profitability landscape for Paramount Skydance Corporation Class B, highlighted by declining efficiency and significant losses in recent years. The negative trends in all four ratios suggest a substantial reduction in earning capabilities and the potential need for strategic reassessment to restore operational and financial performance.