Paramount Skydance Corporation Class B Common Stock (PSKY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -5,317,000 | -333,000 | 2,197,000 | -9,351,000 | 4,178,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,320,000 | 22,526,000 | 23,036,000 | 22,402,000 | 15,371,000 |
| Return on total capital | -32.58% | -1.48% | 9.54% | -41.74% | 27.18% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-5,317,000K ÷ ($—K + $16,320,000K)
= -32.58%
The return on total capital for Paramount Skydance Corporation Class B Common Stock exhibits significant fluctuations over the observed period. As of December 31, 2020, the return stood at 27.18%, indicating a robust efficiency in generating profits relative to the total capital employed. However, by December 31, 2021, the return experienced a substantial decline to -41.74%, reflecting a period of underperformance or adverse operational conditions that resulted in negative returns on total capital. In the subsequent year, December 31, 2022, there was a notable recovery, with the return improving to 9.54%, suggesting a return to profitability and some stabilization of capital efficiency. Nonetheless, by December 31, 2023, the return again turned negative, at -1.48%, signaling a downturn or challenges impacting the company's ability to produce positive returns from its total capital base. The most recent data from December 31, 2024, reveals a further deterioration, with the return decreasing sharply to -32.58%, indicating a significant decline in the company's effectiveness in generating returns relative to its total capital over this period. Overall, the trend illustrates considerable volatility in the company's ability to generate positive returns on total capital, with periods of recovery punctuated by acute downturns, potentially reflecting underlying operational, strategic, or market-related challenges.
Peer comparison
Dec 31, 2024