Paramount Skydance Corporation Class B Common Stock (PSKY)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	-6,177,000	-1,253,000	1,266,000	5,206,000	3,147,000
Revenue	US$ in thousands	29,213,000	29,652,000	30,154,000	28,586,000	25,285,000
Pretax margin		-21.14%	-4.23%	4.20%	18.21%	12.45%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-6,177,000K ÷ $29,213,000K
= -21.14%

The pretax margin of Paramount Skydance Corporation Class B Common Stock exhibits notable fluctuations over the observed period from December 31, 2020, to December 31, 2024. In 2020, the pretax margin was 12.45%, indicating a moderate level of profitability before taxes. This margin increased significantly in 2021 to 18.21%, reflecting improved operational efficiency or higher earnings relative to revenue.

However, in 2022, the pretax margin decreased sharply to 4.20%, suggesting a deterioration in profitability, potentially due to increased expenses, reduced revenues, or other operational challenges. The negative trend continued into 2023, with the margin declining to -4.23%, implying that the company's earnings before tax were now negative, possibly due to losses incurred during that year.

This negative trajectory persisted into 2024, with the pretax margin worsening further to -21.14%. The shift into negative territory and the increasing magnitude of losses highlight significant operational or financial difficulties faced by the company during this period, which may involve factors such as declining revenues, increased costs, extraordinary expenses, or unfavorable market conditions.

In summary, the company's pretax margin has transitioned from positive and relatively strong in 2020 and 2021 to progressively negative in subsequent years, indicating a decline in profitability before taxes and raising concerns about the company's financial health and operational stability over the analyzed period.