Operating Profit Margin
since 2005
Calculation
Paramount Global, operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 7.77% | = | 100 | × | 2,342) | ÷ | 30,154) |
| Dec 31, 2021 | 22.03% | = | 100 | × | 6,297) | ÷ | 28,586) |
| Dec 31, 2020 | 16.37% | = | 100 | × | 4,139) | ÷ | 25,285) |
| Dec 31, 2019 | 15.36% | = | 100 | × | 4,273) | ÷ | 27,812) |
| Dec 31, 2018 | 19.07% | = | 100 | × | 2,768) | ÷ | 14,514) |
| Dec 31, 2017 | 17.70% | = | 100 | × | 2,423) | ÷ | 13,692) |
| Dec 31, 2016 | 19.91% | = | 100 | × | 2,621) | ÷ | 13,166) |
| Dec 31, 2015 | 17.41% | = | 100 | × | 2,417) | ÷ | 13,886) |
| Dec 31, 2014 | 20.98% | = | 100 | × | 2,896) | ÷ | 13,806) |
| Dec 31, 2013 | 21.32% | = | 100 | × | 3,259) | ÷ | 15,284) |
| Dec 31, 2012 | 21.17% | = | 100 | × | 2,983) | ÷ | 14,089) |
| Dec 31, 2011 | 17.75% | = | 100 | × | 2,529) | ÷ | 14,245) |
| Dec 31, 2010 | 12.92% | = | 100 | × | 1,816) | ÷ | 14,060) |
| Dec 31, 2009 | 7.77% | = | 100 | × | 1,011) | ÷ | 13,015) |
| Dec 31, 2008 | -87.16% | = | 100 | × | (12,159) | ÷ | 13,950) |
| Dec 31, 2007 | 18.63% | = | 100 | × | 2,622) | ÷ | 14,073) |
| Dec 31, 2006 | 18.20% | = | 100 | × | 2,606) | ÷ | 14,320) |
| Dec 31, 2005 | -46.90% | = | 100 | × | (6,818) | ÷ | 14,536) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin exhibited significant volatility between 2005 and 2022, characterized by periods of severe loss, a decade of relative stability, and a recent divergence between revenue growth and profitability.
- Early Period Volatility (2005–2008)
- The initial years were marked by extreme fluctuations in operating performance. A substantial negative margin of -46.90% in 2005 was followed by a recovery to approximately 18% in 2006 and 2007. However, this recovery was short-lived, as 2008 saw a sharp decline to a margin of -87.16%, coinciding with an operating loss of 12,159 million US dollars.
- Stabilization and Peak Performance (2009–2018)
- Following the 2008 downturn, the operating profit margin entered a phase of recovery and stabilization. Starting at 7.77% in 2009, the margin trended upward to reach a peak of 21.32% in 2013. For the subsequent five years, margins remained consistently strong, fluctuating within a narrow band between 17.41% and 19.91%, indicating a period of operational efficiency and predictable cost management.
- Revenue Expansion and Margin Compression (2019–2022)
- A significant shift occurred in 2019, where revenues increased from 14,514 million US dollars in 2018 to 27,812 million US dollars. Despite this nearly twofold increase in top-line growth, the operating profit margin compressed to 15.36%. While a recovery to 22.03% was achieved in 2021, the period ended with a sharp contraction in 2022. By December 31, 2022, the operating profit margin fell to 7.77%, its lowest positive level since 2009, despite revenues reaching a peak of 30,154 million US dollars.
The long-term trend indicates that while the company successfully scaled its revenue base in the latter part of the analyzed period, this growth did not translate into sustained margin expansion. The 2022 result demonstrates a decoupling of revenue growth from operating profitability, as the highest revenue year in the series coincided with a significant erosion of the operating margin.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Paramount Global, operating profit margin, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 7.77% | 26.46% | 11.56% | 24.82% | 17.82% |
| Dec 31, 2021 | 22.03% | 30.55% | 17.89% | 39.65% | 20.86% |
| Dec 31, 2020 | 16.37% | 22.59% | 16.89% | 38.01% | 18.34% |
| Dec 31, 2019 | 15.36% | 21.15% | 19.39% | 33.93% | 12.92% |
| Dec 31, 2018 | 19.07% | 19.24% | 20.11% | 44.62% | 10.16% |
| Dec 31, 2017 | 17.70% | 23.59% | 21.28% | 49.70% | 7.17% |
| Dec 31, 2016 | 19.91% | 26.27% | 20.97% | 44.96% | 4.30% |
| Dec 31, 2015 | 17.41% | 25.82% | 21.47% | 34.72% | 4.51% |
| Dec 31, 2014 | 20.98% | 24.99% | 21.67% | 40.06% | 7.31% |
| Dec 31, 2013 | 21.32% | 23.34% | 20.98% | 35.62% | 5.22% |
| Dec 31, 2012 | 21.17% | 25.43% | 19.46% | 10.57% | 1.39% |
| Dec 31, 2011 | 17.75% | 30.98% | 19.20% | — | 11.74% |
| Dec 31, 2010 | 12.92% | 35.40% | 21.03% | — | 13.12% |
| Dec 31, 2009 | 7.77% | 35.15% | 20.18% | — | 11.49% |
| Dec 31, 2008 | -87.16% | 30.43% | 19.65% | — | 8.90% |
| Dec 31, 2007 | 18.63% | 30.64% | 18.05% | — | 7.56% |
| Dec 31, 2006 | 18.20% | 33.48% | 18.50% | — | 6.46% |
| Dec 31, 2005 | -46.90% | 32.86% | 16.58% | — | 0.44% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).