Paramount Skydance Corporation Class B Common Stock (PSKY)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-5,269,000	-451,000	2,342,000	4,056,000	4,139,000
Revenue	US$ in thousands	29,213,000	29,652,000	30,154,000	28,586,000	25,285,000
Operating profit margin		-18.04%	-1.52%	7.77%	14.19%	16.37%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-5,269,000K ÷ $29,213,000K
= -18.04%

The operating profit margin of Paramount Skydance Corporation Class B Common Stock has experienced a notable decline over the specified period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin stood at 16.37%, indicating a relatively healthy profit generation relative to its sales. By the end of 2021, the margin decreased to 14.19%, reflecting a slight contraction in operational efficiency or increased operating expenses.

The downward trend continued more significantly by the end of 2022, with the operating profit margin narrowing to 7.77%, suggestive of mounting operational challenges or increased costs that eroded profit margins. Moving into 2023, the margin turned negative at -1.52%, indicating that operating expenses exceeded operating revenues, thus resulting in operating losses. The deterioration intensified in 2024, with the margin reaching -18.04%, signaling a substantial operational decline and possibly severe issues affecting profitability.

Overall, the trend indicates a steady erosion of operating efficiency over the four-year span, culminating in a transition from profitable operations to significant operating losses. This progression suggests increasing operational challenges or unfavorable market conditions impacting the company's ability to generate profit from its core operations during this period.