Stock Analysis on Net
Stock Analysis on Net

Paramount Global (NASDAQ:PARA)

This company has been moved to the archive! The financial data has not been updated since May 4, 2023.

Common-Size Income Statement 

Paramount Global, common-size consolidated income statement

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Revenues 100.00 100.00 100.00 100.00 100.00
Operating costs and expenses -65.81 -62.07 -59.29 -61.93 -62.77
Gross profit 34.19% 37.93% 40.71% 38.07% 37.23%
Selling, general and administrative -23.32 -22.38 -21.04 -20.30 -15.27
Depreciation and amortization -1.34 -1.36 -1.70 -1.59 -1.54
Restructuring and other corporate matters -1.94 -0.35 -2.44 -2.79 -1.34
Net gain on dispositions 0.19 8.20 0.85 1.97 0.00
Operating income 7.77% 22.03% 16.37% 15.36% 19.07%
Interest expense -3.09 -3.45 -4.08 -3.46 -3.22
Interest income 0.36 0.19 0.24 0.24 0.39
Net gains (losses) from investments -0.03 0.16 0.81 0.41 0.00
Loss on extinguishment of debt -0.40 -0.45 -0.50 0.00 0.00
Pension and postretirement benefit costs -0.22 -0.15 -0.27 -0.38 -0.43
Foreign exchange losses -0.19 -0.09 -0.14 -0.06 -0.02
Pension settlement charge 0.00 -0.03 0.00 0.00 0.00
Other 0.00 0.01 0.01 -0.08 -0.02
Other items, net -0.41% -0.27% -0.40% -0.52% -0.48%
Earnings from continuing operations before income taxes and equity in loss of investee companies 4.20% 18.21% 12.45% 12.03% 15.77%
(Provision) benefit for income taxes -0.75 -2.26 -2.12 0.03 -1.88
Equity in loss of investee companies, net of tax -0.68 -0.32 -0.11 -0.19 -0.39
Net earnings from continuing operations 2.77% 15.63% 10.22% 11.87% 13.50%
Net earnings from discontinued operations, net of tax 1.26 0.57 0.46 0.14 0.00
Net earnings, Paramount and noncontrolling interests 4.03% 16.20% 10.68% 12.01% 13.50%
Net earnings attributable to noncontrolling interests -0.36 -0.31 -1.10 -0.11 0.00
Net earnings attributable to Paramount 3.66% 15.89% 9.58% 11.89% 13.50%
Preferred stock dividends -0.19 -0.15 0.00 0.00 0.00
Net earnings attributable to Paramount common stock 3.47% 15.74% 9.58% 11.89% 13.50%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial data reveals several notable trends in the company's operational efficiency, profitability, and expense management over the five-year period ending December 31, 2022.

Operating Costs and Gross Profit
Operating costs and expenses as a percentage of revenues fluctuated modestly but increased notably in the final year, rising to -65.81%, the highest in the period analyzed. Correspondingly, gross profit margin declined from a peak of 40.71% in 2020 to 34.19% in 2022, indicating growing pressure on cost control or changes in revenue mix adversely affecting profitability.
Selling, General, and Administrative Expenses
Selling, general, and administrative (SG&A) expenses consistently increased as a share of revenues, moving from -15.27% in 2018 to -23.32% in 2022. This upward trend reflects rising operational expenses relative to revenues, which likely contributed to the compression of gross and operating margins.
Depreciation, Amortization, and Other Corporate Costs
Depreciation and amortization remained relatively stable, with a slight decline in recent years. Restructuring and other corporate matters showed volatility, peaking at -2.79% in 2019 before a low of -0.35% in 2021 and rising again in 2022 to -1.94%. These fluctuations suggest episodic restructuring or corporate activity impacting expenses.
Net Gain on Dispositions
The net gain on dispositions was significant in 2021 at 8.2%, contributing positively to operating income. However, it fell sharply to 0.19% in 2022, reflecting reduced gains from asset sales or divestitures in the most recent year.
Operating Income
Operating income displayed variability, decreasing from 19.07% in 2018 to 15.36% in 2019, then increasing to a high of 22.03% in 2021 before declining sharply to 7.77% in 2022. This sharp decline in the final year indicates diminished operating profitability, likely impacted by higher expenses and lower gains from dispositions.
Interest and Investment Income/Expenses
Interest expense remained relatively steady around -3.22% to -3.46%, decreasing slightly to -3.09% in 2022. Interest income was modest and declined somewhat until a slight recovery in 2022. Net gains from investments were positive until 2021 but turned slightly negative in 2022, indicating a weakening return on investments.
Other Financial Components
The loss on extinguishment of debt was recorded from 2020 through 2022 with marginal negative impact. Pension and postretirement benefit costs decreased gradually but experienced a minor increase in 2022. Foreign exchange losses increased slightly in the final years but remained relatively low overall. Other items and miscellaneous charges maintained a minor negative role.
Earnings Before Taxes and Net Earnings
Earnings before income taxes and equity in losses showed a downward trend, especially in 2022, falling to 4.2% from highs above 15% in earlier years. Income tax provisions reduced significantly in 2019 with a slight rebound afterward. Equity in loss of investee companies increased negatively in 2022, exerting additional pressure on income.
Net Earnings and Components
Net earnings from continuing operations dropped substantially from 15.63% in 2021 to 2.77% in 2022. Net earnings attributable to Paramount common stock mirrored this decline, falling to 3.47% in 2022 from 15.74% in 2021. Earnings from discontinued operations showed consistent but small positive contributions.
Overall Trends
The company's profitability, measured relative to revenues, peaked around 2020-2021 but deteriorated sharply in 2022 across most metrics, including operating income and net earnings. Increasing operating costs, higher SG&A expenses, and lower gains from asset dispositions contributed to this decline. Despite steady interest expense and minor fluctuations in other costs, the combined effect was a marked reduction in financial performance in 2022.