Common-Size Income Statement
Quarterly Data
Paramount Global, common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Revenues
- Revenues remained constant as a baseline at 100% across all quarters, serving as the reference point for other financial metrics expressed as a percentage of revenues.
- Operating Costs and Expenses
- The proportion of operating costs and expenses to revenues fluctuated notably, ranging approximately from -55.33% to as low as -69.95%. The highest expense ratios occurred during late 2019 and the first half of 2023. There was a visible spike in operating costs relative to revenues in late 2019 and toward the end of 2022, indicating potentially rising costs or decreased efficiency in those periods.
- Gross Profit
- Gross profit margins as a percentage of revenues generally varied between roughly 30% and 44%, with peaks near 44.67% in mid-2020 and troughs near 30.05% in late 2019. This pattern indicates some volatility, with higher profitability in mid-2020 potentially tied to reduced costs or increased pricing power. The margins declined again toward early 2023.
- Selling, General and Administrative Expenses (SG&A)
- SG&A expenses as a percentage of revenues exhibited a generally increasing trend over time, rising from about -13.93% in early 2018 to a peak near -25.02% in late 2022. This upward trend points to growing overhead or administrative costs relative to revenues.
- Depreciation and Amortization
- The depreciation and amortization expense ratio to revenues remained relatively stable, fluctuating mostly between -1.2% and -2.0% without a clear increasing or decreasing trend.
- Restructuring and Other Corporate Matters
- This expense category showed intermittent spikes, notably reaching -6.81% of revenues in late 2019, suggesting periods of significant restructuring or special charges in certain quarters. More recently, there were recurring moderate charges around -2% to -3.8% in late 2022.
- Gain on Dispositions
- Gains on dispositions appeared sporadically, with pronounced positive impacts such as 27.84% of revenues in late 2021 and smaller gains in other periods. These gains likely reflect non-recurring asset sales or divestitures.
- Operating Income (Loss)
- Operating income as a percentage of revenues exhibited considerable volatility, ranging from a low of approximately -16.88% in early 2023 to highs exceeding 33% in late 2021. The near breakeven or negative operating income recorded in late 2019 and early 2023 highlights periods of operational stress or increased expenses.
- Interest Expense and Income
- Interest expense remained relatively steady, oscillating mostly between -2.8% and -4.4% of revenues. Interest income was consistently low but slightly increased in recent quarters, peaking near 0.48% in early 2023, indicating marginal improvements in investment income or cash management.
- Net Gains (Losses) from Investments
- Net investment gains showed some positive contributions at various intervals, with notable spikes such as 2.53% in mid-2020. However, occasional small losses were also observed, reflecting variability in investment performance.
- Loss on Extinguishment of Debt
- This item was infrequent but notable at specific points, particularly hitting -1.7% in early 2020, indicating expenses related to debt restructuring or repayment penalties at those times.
- Other Items, Net
- Other miscellaneous items generally had small negative impacts on revenues, typically ranging between -0.1% and -0.6%, with some quarters showing near neutral or slight positive effects.
- Earnings Before Income Taxes and Equity in Loss of Investee Companies
- Pre-tax earnings demonstrated significant variation, from a high above 30% in late 2021 to dipping below zero, specifically about -20.14% in early 2023. This broad range underscores the volatility in profitability before tax considerations, affected by fluctuating operating income and other non-operating items.
- Provision (Benefit) for Income Taxes
- Income tax provisions fluctuated widely, with some periods showing tax benefits (positive percentages) and others reflecting tax expenses. Notably, large positive values such as 5.3% in early 2019 and 5.24% in early 2023 suggest tax credits or benefits realized during those times, contrasting with regular negative tax provisions in other quarters.
- Equity in Loss of Investee Companies
- This line consistently recorded modest losses, varying generally between -0.1% and -1.0%, indicating ongoing negative contributions from investee companies that impacted net income.
- Net Earnings from Continuing Operations
- Net earnings, as a percentage of revenues, mirrored the volatility in operating and pre-tax earnings, with peaks above 27% in early 2019 and through late 2021, and troughs reaching negative territory in early 2023 (-15.93%). This reflects periods of strong profitability alternating with operational challenges or restructuring impacts.
- Net Earnings from Discontinued Operations
- Net earnings from discontinued operations were generally small but increased over time, peaking at 2.44% in late 2022. This implies progressing disposals or wind-downs of business segments contributing positively, albeit modestly, to overall earnings.
- Net Earnings Attributable to Paramount and Noncontrolling Interests
- Net earnings attributable to the company and noncontrolling interests largely followed the pattern of net earnings from continuing operations. Noncontrolling interests were mostly small negative amounts, indicating minimal but consistent losses attributed to minority shareholders.
- Net Earnings Attributable to Paramount Common Stock
- This metric closely tracked overall net earnings attributable to the company, showing a pattern of strong gains in early 2019 and 2021, with declines culminating in a substantial loss in early 2023 (-15.58%).
- Preferred Stock Dividends
- Preferred stock dividends were minimal but present in recent years, generally under -0.21% of revenues, signifying a modest but consistent cash outflow to preferred shareholders.
- Summary of Trends
- The data reveals a company experiencing significant cyclical fluctuations in profitability and expenses as a percent of revenues. While there were intervals of strong gross profit and operating income margins, especially around 2019 and late 2021, these were punctuated by periods of elevated costs, restructuring charges, and notable losses, particularly in early 2023. Selling, general, and administrative expenses showed a general upward trend, which may have pressured profitability. Gains from asset dispositions contributed material one-time boosts in certain quarters. The period also reflected variability in tax impacts and investment results, suggesting an active approach to balance sheet and investment management. Overall, earnings metrics underscore volatility likely due to a combination of operational challenges, strategic restructuring, and market conditions.»