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 
Quarterly Data

Paramount Global, common-size consolidated income statement (quarterly data)

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3 months ended: 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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Operating costs and expenses -68.33 -67.43 -64.49 -65.64 -65.45 -68.15 -61.48 -58.88 -58.86 -61.29 -59.31 -55.33 -60.87 -69.95 -59.11 -58.94 -59.83 -64.74 -58.90 -63.01 -63.81
Gross profit 31.67% 32.57% 35.51% 34.36% 34.55% 31.85% 38.52% 41.12% 41.14% 38.71% 40.69% 44.67% 39.13% 30.05% 40.89% 41.06% 40.17% 35.26% 41.10% 36.99% 36.19%
Programming charges -23.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Selling, general and administrative -24.13 -25.02 -24.15 -21.98 -22.09 -24.89 -23.09 -22.23 -19.19 -22.05 -22.67 -19.47 -19.97 -21.69 -21.99 -19.19 -18.49 -15.21 -16.83 -15.35 -13.93
Depreciation and amortization -1.38 -1.51 -1.33 -1.21 -1.31 -1.26 -1.44 -1.45 -1.34 -1.44 -1.66 -2.01 -1.72 -1.75 -1.61 -1.53 -1.49 -1.37 -1.72 -1.62 -1.49
Restructuring and other corporate matters 0.00 -3.80 -2.44 -0.64 -0.78 -0.24 -0.70 -0.53 0.00 -2.57 -0.89 -2.60 -3.55 -6.81 -1.82 -0.10 -2.51 -2.61 -1.41 -1.01 -0.24
Gain on dispositions 0.00 0.00 0.59 0.00 0.20 27.84 0.00 1.77 0.00 3.11 0.00 0.00 0.00 0.00 0.00 0.00 7.73 0.00 0.00 0.00 0.00
Operating income (loss) -16.88% 2.24% 8.18% 10.53% 10.58% 33.30% 13.30% 18.68% 20.62% 15.76% 15.47% 20.59% 13.88% -0.19% 15.47% 20.24% 25.41% 16.08% 21.15% 19.01% 20.53%
Interest expense -3.11 -2.83 -3.34 -2.96 -3.28 -3.01 -3.68 -3.70 -3.49 -3.90 -4.44 -4.33 -3.71 -3.48 -3.67 -3.32 -3.38 -2.93 -3.52 -3.35 -3.14
Interest income 0.48 0.43 0.48 0.24 0.29 0.20 0.17 0.20 0.18 0.31 0.24 0.18 0.22 0.19 0.28 0.21 0.27 0.35 0.37 0.40 0.45
Net gains (losses) from investments 0.00 0.00 -0.13 0.00 0.00 0.25 -0.08 0.49 0.00 2.53 0.00 0.53 0.00 1.09 0.00 0.00 0.54 0.00 0.00 0.00 0.00
Loss on extinguishment of debt 0.00 0.00 0.00 -0.60 -1.00 0.00 0.00 0.00 -1.73 0.00 -0.39 -1.70 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other items, net -0.63 -0.41 -0.52 -0.54 -0.18 -0.53 -0.39 -0.15 0.01 -0.39 -0.34 -0.43 -0.43 -1.53 -0.40 0.21 -0.39 -0.42 -0.52 -0.69 -0.29
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies -20.14% -0.57% 4.67% 6.67% 6.41% 30.21% 9.32% 15.51% 15.58% 14.30% 10.54% 14.85% 9.96% -3.92% 11.68% 17.35% 22.44% 13.07% 17.47% 15.38% 17.55%
(Provision) benefit for income taxes 5.24 0.46 -1.46 -1.66 -0.46 -4.18 -1.82 0.52 -3.05 -2.66 -0.45 -3.16 -2.06 0.00 -1.88 -3.37 5.30 0.97 -1.96 -3.26 -3.59
Equity in loss of investee companies, net of tax -1.03 -0.98 -0.84 -0.37 -0.50 -0.14 -0.27 -0.67 -0.24 0.03 -0.15 -0.20 -0.14 0.00 -0.21 -0.29 -0.25 -0.10 -0.55 -0.58 -0.37
Net earnings (loss) from continuing operations -15.93% -1.09% 2.37% 4.64% 5.44% 25.90% 7.23% 15.36% 12.29% 11.67% 9.94% 11.49% 7.76% -3.92% 9.58% 13.68% 27.48% 13.94% 14.96% 11.54% 13.59%
Net earnings from discontinued operations, net of tax 0.62 2.44 1.13 0.78 0.57 0.45 1.10 0.62 0.16 0.39 0.81 0.46 0.23 0.22 0.06 0.08 0.18 0.00 0.00 0.00 0.00
Net earnings (loss), Paramount and noncontrolling interests -15.31% 1.34% 3.50% 5.42% 6.02% 26.35% 8.34% 15.98% 12.45% 12.06% 10.74% 11.95% 7.99% -3.70% 9.64% 13.76% 27.66% 13.94% 14.96% 11.54% 13.59%
Net earnings attributable to noncontrolling interests -0.08 -1.08 -0.16 -0.04 -0.11 -0.63 -0.20 -0.20 -0.16 -0.28 -0.21 -4.03 -0.05 -0.06 -0.24 -0.08 -0.07 0.00 0.00 0.00 0.00
Net earnings (loss) attributable to Paramount -15.39% 0.26% 3.34% 5.39% 5.91% 25.72% 8.14% 15.78% 12.29% 11.78% 10.54% 7.92% 7.94% -3.75% 9.41% 13.68% 27.59% 13.94% 14.96% 11.54% 13.59%
Preferred stock dividends -0.19 -0.20 -0.20 -0.18 -0.19 -0.19 -0.21 -0.21 -0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net earnings (loss) attributable to Paramount common stock -15.58% 0.06% 3.14% 5.21% 5.72% 25.54% 7.93% 15.57% 12.28% 11.78% 10.54% 7.92% 7.94% -3.75% 9.41% 13.68% 27.59% 13.94% 14.96% 11.54% 13.59%

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).

The common-size income statement reveals significant fluctuations in Paramount Global’s profitability and cost structure between 2018 and 2023. Revenues are consistently represented as 100% by definition. Operating costs and expenses generally consume a substantial portion of revenue, ranging from approximately 55% to 69% over the period. Gross profit as a percentage of revenue demonstrates variability, peaking at 41.10% in September 2018 and experiencing a low of 30.05% in December 2019.

Gross Profit Trends
Gross profit percentage generally remained above 35% through 2020, but declined notably in 2021 and 2022, reaching a low of 31.67% in March 2023. This suggests potential pressures on cost of goods sold or pricing strategies during those periods.
Operating Income (Loss)
Operating income exhibits considerable volatility. A peak of 25.41% is observed in March 2019, followed by a substantial decline to -0.19% in December 2019. A significant recovery is seen in December 2021 (33.30%), but this is followed by a sharp decrease to -16.88% in March 2023. This suggests the company’s core operations are subject to considerable external and internal factors.
Key Expense Categories
Selling, general and administrative expenses consistently represent a significant portion of revenue, generally between 19% and 26%. Depreciation and amortization remains relatively stable, typically between 1.3% and 2.0%. Restructuring and other corporate matters show significant fluctuations, peaking at 6.81% in December 2019, indicating potentially large one-time charges during that period.
Net Earnings Attributable to Paramount
Net earnings attributable to Paramount demonstrate a similar pattern of volatility as operating income. A high of 27.59% is observed in March 2019, followed by a decline to -3.75% in December 2019. The most recent period, March 2023, shows a significant loss of -15.58%, indicating substantial challenges to profitability.
Interest and Other Financial Items
Interest expense consistently consumes between 3% and 4% of revenue. Interest income provides a partial offset, typically between 0.2% and 0.5%. Net gains (losses) from investments are generally small, but show a positive contribution in some quarters. Loss on extinguishment of debt appears sporadically, impacting net earnings in June 2020 and March 2021.
Tax Rate Impact
The (provision) benefit for income taxes fluctuates significantly, ranging from a benefit of -3.37% in June 2019 to a provision of 5.24% in March 2023. This variability impacts net earnings and suggests changes in taxable income or applicable tax rates.
Discontinued Operations
Net earnings from discontinued operations contribute positively in most periods, though the impact is relatively small compared to continuing operations. The contribution from discontinued operations increased in later periods, peaking at 2.44% in December 2022.

Overall, the common-size income statement indicates a business susceptible to significant earnings swings. While periods of strong profitability are evident, the company has also experienced substantial losses, particularly in recent quarters. The volatility in operating income and net earnings suggests a sensitivity to external factors, cost management challenges, or strategic shifts.

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