Paramount Skydance Corporation Class B Common Stock (PSKY)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 8,658,000 | 7,264,000 | 10,309,000 | 10,842,000 | 10,293,000 |
| Revenue | US$ in thousands | 29,213,000 | 29,652,000 | 30,154,000 | 28,586,000 | 25,285,000 |
| Gross profit margin | 29.64% | 24.50% | 34.19% | 37.93% | 40.71% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $8,658,000K ÷ $29,213,000K
= 29.64%
The gross profit margin of Paramount Skydance Corporation Class B Common Stock has exhibited a declining trend over the analyzed period. As of December 31, 2020, the gross profit margin stood at 40.71%, indicating that approximately 40.71% of revenue remained after deducting the cost of goods sold. By December 31, 2021, this margin decreased to 37.93%, reflecting a slight reduction in profitability at the gross level. The downward trend continued in 2022, with the gross profit margin dropping to 34.19%, signifying increased cost pressures or a reduction in pricing power.
The most pronounced decline occurred between 2022 and 2023, when the gross profit margin fell sharply to 24.50%, representing a significant erosion in gross profitability. This may be indicative of increased production costs, changes in revenue mix, or competitive pressures impacting pricing strategies. However, in 2024, there was a partial recovery, with the gross profit margin improving to 29.64%. This upward movement suggests some stabilization or cost management improvements, though it remains well below historical levels seen in 2020 and 2021.
Overall, the trend reflects considerable challenges in maintaining gross profitability, with a notable decline over the three-year span and an average gross profit margin that has decreased by approximately 11 percentage points from 2020 to 2024. This pattern warrants further investigation into underlying factors such as cost structure changes, market dynamics, and revenue composition to fully understand the drivers behind this profitability trajectory.
Peer comparison
Dec 31, 2024