Name: Paramount Global (NASDAQ:PARA) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Paramount Global, consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Revenues	30,154)	28,586)	25,285)	27,812)	14,514)
Operating costs and expenses	(19,845)	(17,744)	(14,992)	(17,223)	(9,111)
Gross profit	10,309)	10,842)	10,293)	10,589)	5,403)
Selling, general and administrative	(7,033)	(6,398)	(5,320)	(5,647)	(2,217)
Depreciation and amortization	(405)	(390)	(430)	(443)	(223)
Restructuring and other corporate matters	(585)	(100)	(618)	(775)	(195)
Net gain on dispositions	56)	2,343)	214)	549)	—)
Operating income	2,342)	6,297)	4,139)	4,273)	2,768)
Interest expense	(931)	(986)	(1,031)	(962)	(467)
Interest income	108)	53)	60)	66)	57)
Net gains (losses) from investments	(9)	47)	206)	113)	—)
Loss on extinguishment of debt	(120)	(128)	(126)	—)	—)
Pension and postretirement benefit costs	(65)	(43)	(69)	(105)	(63)
Foreign exchange losses	(58)	(26)	(35)	(17)	(3)
Pension settlement charge	—)	(10)	—)	—)	—)
Other	(1)	2)	3)	(23)	(3)
Other items, net	(124)	(77)	(101)	(145)	(69)
Earnings from continuing operations before income taxes and equity in loss of investee companies	1,266)	5,206)	3,147)	3,345)	2,289)
(Provision) benefit for income taxes	(227)	(646)	(535)	9)	(273)
Equity in loss of investee companies, net of tax	(204)	(91)	(28)	(53)	(56)
Net earnings from continuing operations	835)	4,469)	2,584)	3,301)	1,960)
Net earnings from discontinued operations, net of tax	379)	162)	117)	38)	—)
Net earnings, Paramount and noncontrolling interests	1,214)	4,631)	2,701)	3,339)	1,960)
Net earnings attributable to noncontrolling interests	(110)	(88)	(279)	(31)	—)
Net earnings attributable to Paramount	1,104)	4,543)	2,422)	3,308)	1,960)
Preferred stock dividends	(58)	(44)	—)	—)	—)
Net earnings attributable to Paramount common stock	1,046)	4,499)	2,422)	3,308)	1,960)

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).

Between 2018 and 2022, revenue exhibited a general upward trajectory, characterized by a significant surge from 14.5 billion in 2018 to 27.8 billion in 2019. Despite a contraction in 2020, revenues recovered and continued to grow, reaching 30.2 billion by the end of 2022. However, this top-line growth was not matched by a consistent increase in profitability, as evidenced by the volatility in operating income and net earnings.

Revenue and Gross Profitability: Revenues increased by approximately 108% over the five-year period. Gross profit followed a similar initial spike, rising from 5.4 billion in 2018 to a peak of 10.8 billion in 2021, before declining slightly to 10.3 billion in 2022. This suggests that while the scale of operations expanded rapidly, the ability to convert revenue into gross profit plateaued after 2019.
Operating Expense Analysis: Selling, general, and administrative (SG&A) expenses grew substantially, rising from 2.2 billion in 2018 to 7.0 billion in 2022. This growth in overhead costs consistently outpaced the growth of gross profit since 2019. Additionally, restructuring and other corporate matters remained a recurring burden, with a notable spike of 775 million in 2019 and 585 million in 2022.
Operating Income and Non-Recurring Gains: Operating income peaked in 2021 at 6.3 billion, but this figure was heavily influenced by a one-time net gain on dispositions of 2.3 billion. In the absence of such significant non-recurring gains, the underlying operating performance shows a marked decline in 2022, where operating income fell to 2.3 billion, the lowest level since 2018.
Net Earnings and Bottom-Line Performance: Net earnings attributable to common stock reached a high of 4.5 billion in 2021 but experienced a sharp contraction to 1.0 billion in 2022. This downturn is attributed to the combination of rising SG&A costs, the absence of large asset disposition gains, and continued losses from investee companies, which increased to 204 million in 2022.
Financial Obligations and Other Costs: Interest expenses remained relatively stable between 931 million and 1.03 billion from 2019 through 2022, indicating a consistent debt service burden. Foreign exchange losses also trended upward, reaching a period high of 58 million in 2022, further compressing the net margin.

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