Paramount Skydance Corporation Class B Common Stock (PSKY)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-6,190,000	-608,000	1,104,000	4,543,000	2,422,000
Total stockholders’ equity	US$ in thousands	16,320,000	22,526,000	23,036,000	22,402,000	15,371,000
ROE		-37.93%	-2.70%	4.79%	20.28%	15.76%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-6,190,000K ÷ $16,320,000K
= -37.93%

The return on equity (ROE) for Paramount Skydance Corporation Class B Common Stock demonstrates significant fluctuations over the analyzed period. As of December 31, 2020, the ROE stood at 15.76%, indicating a reasonably strong profitability relative to shareholders' equity. This figure increased markedly to 20.28% by December 31, 2021, reflecting improved operational efficiency or profitability during that year.

However, the ROE experienced a substantial decline in the subsequent period, descending sharply to 4.79% as of December 31, 2022. This decrease suggests a deterioration in the company's ability to generate profit relative to shareholders' equity, possibly due to increased costs, lower revenues, or other operational challenges.

The downward trend persisted into 2023, with the ROE turning negative at -2.70%, indicating that the company incurred a net loss that was sufficient to wipe out shareholders' equity, thereby damaging profitability metrics. This negative shift signifies a significant deterioration in financial performance.

The most alarming development is observed in 2024, where the ROE plummeted further to -37.93%. Such a negative ROE reflects considerable losses, raising concerns about the company's financial health, return generation capacity, and overall operational stability during this period. This persistent decline over the four years underscores a trend of declining profitability and potential structural challenges faced by the company.