Paramount Skydance Corporation Class B Common Stock (PSKY)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	46,172,000	53,543,000	58,393,000	58,620,000	52,663,000
Operating ROA		-11.41%	-0.84%	4.01%	6.92%	7.86%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-5,269,000K ÷ $46,172,000K
= -11.41%

The operating return on assets (ROA) for Paramount Skydance Corporation Class B Common Stock has exhibited a declining trajectory over the analyzed period. As of December 31, 2020, the operating ROA was 7.86%, indicating a relatively healthy utilization of assets to generate operating income. By the end of 2021, this metric decreased to 6.92%, reflecting a modest decline in operational efficiency. The downward trend persisted through 2022, with the operating ROA dropping to 4.01%, suggesting further deterioration in asset productivity in generating operating income.

The decline intensified significantly by December 31, 2023, when the operating ROA turned negative at -0.84%, indicating that the company was incurring operating losses relative to its asset base. This negative figure became even more pronounced in 2024, with an operating ROA of -11.41%, signaling a substantial decline in operational performance and a possible erosion of asset utilization efficiency.

Overall, the data reflects a consistent deterioration in the company's ability to generate operating income from its assets over this period, culminating in a negative operating ROA in the most recent years. This trend warrants further investigation into operational efficiency, asset management, and underlying causes driving the decline in profitability.