Paramount Skydance Corporation Class B Common Stock (PSKY)

Return on total capital

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,372,000	-4,352,000	-5,317,000	-5,009,000	-4,765,000	458,000	-365,000	-589,000	-484,000	478,000	2,515,000	2,793,000	3,020,000	3,302,000	4,018,000	4,743,000	4,774,000	4,841,000	4,457,000	5,181,000
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	16,705,000	16,538,000	16,320,000	16,628,000	16,497,000	21,894,000	22,526,000	21,864,000	21,655,000	21,851,000	23,036,000	22,647,000	22,776,000	22,664,000	22,402,000	20,559,000	20,098,000	19,171,000	15,371,000	14,556,000
Return on total capital		8.21%	-26.32%	-32.58%	-30.12%	-28.88%	2.09%	-1.62%	-2.69%	-2.24%	2.19%	10.92%	12.33%	13.26%	14.57%	17.94%	23.07%	23.75%	25.25%	29.00%	35.59%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,372,000K ÷ ($—K + $16,705,000K)
= 8.21%

The provided data illustrates the trend in Paramount Skydance Corporation Class B Common Stock's return on total capital over a span of nearly five years. Initially, the return was notably high, recorded at 35.59% as of September 30, 2020. This suggests that the company was generating substantial income relative to its total capital base during this period.

Throughout 2020 and into early 2021, the return exhibited a declining trend, dropping to 29.00% by December 31, 2020, and further decreasing to 25.25% by March 31, 2021. The decline persisted into the following quarters, culminating at 23.07% as of September 30, 2021. This downward trajectory indicates a reduction in the company's efficiency in generating profits relative to its capital over this period.

The decline continued more sharply after year-end 2021, with the return decreasing to 17.94% at year-end 2021 and further to 14.57% at the end of the first quarter in 2022. The trend persisted into mid-2022, with the return declining to 13.26%, and reaching a low of 12.33% as of September 30, 2022. These figures reflect a sustained reduction in profitability relative to the aggregate capital employed in the business.

In 2023, the return on total capital approached minimal levels, falling to 10.92% at the end of 2022 and vastly declining to 2.19% by the end of the first quarter 2023. The subsequent quarters show a sharp deterioration, with a negative return of -2.24% during June 2023, and further declining to -2.69% in September 2023, and -1.62% at year-end 2023. This transition into negative territory indicates a period of significant operational or financial challenges, where the company was unable to generate profits from its capital investments.

The negative trend persisted into the first half of 2024, with returns reaching as low as -28.88% by June 30, 2024, and deepening further to -30.12% by September 30, 2024, and -32.58% at the end of December 2024. These figures underscore periods of substantial losses relative to the total capital during this timeframe.

However, a notable reversal appears in the second quarter of 2025, with the return increasing to 8.21% as of June 30, 2025. This suggests a potential recovery or improvement in profit-generating capacity relative to the company's total capital after an extended period of losses.

In summary, the trend illustrates a significant decline in return on total capital from a high in late 2020, progressing through a sustained period of reduction and negative returns from 2022 onward. The data indicates periods of financial stress and losses, but also hints at possible early signs of recovery in mid-2025.