Return on Assets (ROA)
since 2005
Calculation
Paramount Global, ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss) attributable to Paramount1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.89% | = | 100 | × | 1,104) | ÷ | 58,393) |
| Dec 31, 2021 | 7.75% | = | 100 | × | 4,543) | ÷ | 58,620) |
| Dec 31, 2020 | 4.60% | = | 100 | × | 2,422) | ÷ | 52,663) |
| Dec 31, 2019 | 6.68% | = | 100 | × | 3,308) | ÷ | 49,519) |
| Dec 31, 2018 | 8.97% | = | 100 | × | 1,960) | ÷ | 21,859) |
| Dec 31, 2017 | 1.71% | = | 100 | × | 357) | ÷ | 20,843) |
| Dec 31, 2016 | 5.20% | = | 100 | × | 1,261) | ÷ | 24,238) |
| Dec 31, 2015 | 5.95% | = | 100 | × | 1,413) | ÷ | 23,765) |
| Dec 31, 2014 | 12.29% | = | 100 | × | 2,959) | ÷ | 24,072) |
| Dec 31, 2013 | 7.12% | = | 100 | × | 1,879) | ÷ | 26,387) |
| Dec 31, 2012 | 5.95% | = | 100 | × | 1,574) | ÷ | 26,466) |
| Dec 31, 2011 | 4.98% | = | 100 | × | 1,305) | ÷ | 26,197) |
| Dec 31, 2010 | 2.77% | = | 100 | × | 724) | ÷ | 26,143) |
| Dec 31, 2009 | 0.84% | = | 100 | × | 227) | ÷ | 26,962) |
| Dec 31, 2008 | -43.41% | = | 100 | × | (11,673) | ÷ | 26,889) |
| Dec 31, 2007 | 3.08% | = | 100 | × | 1,247) | ÷ | 40,430) |
| Dec 31, 2006 | 3.82% | = | 100 | × | 1,661) | ÷ | 43,509) |
| Dec 31, 2005 | -16.47% | = | 100 | × | (7,089) | ÷ | 43,030) |
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 Return on Assets (ROA) from 2005 to 2022 exhibits significant volatility, characterized by periods of severe deficit, a mid-term recovery leading to peak efficiency, and a subsequent decline coinciding with a substantial expansion of the total asset base.
- Initial Volatility and Significant Losses (2005–2008)
- A pattern of extreme instability is observed during this period, with ROA recording deep negatives of -16.47% in 2005 and -43.41% in 2008. These results are directly linked to substantial net losses of $7.09 billion and $11.67 billion, respectively, indicating periods of acute financial distress relative to the asset base.
- Recovery and Efficiency Peak (2009–2014)
- A sustained recovery trend began in 2009, with ROA climbing from 0.84% to a period peak of 12.29% in 2014. This trajectory was driven by a steady increase in net earnings, which grew from $227 million in 2009 to $2.96 billion in 2014, while the total asset base remained relatively stable or underwent a slight contraction, thereby optimizing the ratio.
- Performance Fluctuations (2015–2018)
- Efficiency levels became inconsistent between 2015 and 2018. ROA experienced a notable decline to 1.71% in 2017 before rebounding to 8.97% in 2018. This volatility reflects fluctuations in net earnings while the asset base remained lean, hovering between $20.8 billion and $24.2 billion.
- Asset Expansion and Ratio Dilution (2019–2022)
- A structural shift occurred starting in 2019, as total assets surged from $21.86 billion in 2018 to $58.39 billion by 2022. Although net earnings remained positive and reached a peak of $4.54 billion in 2021, the massive increase in the denominator (total assets) led to a dilution of the ROA. Consequently, ROA trended downward from 6.68% in 2018 to 1.89% in 2022, signaling a decrease in the efficiency of asset utilization despite higher absolute earnings.
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Comparison to Competitors
Paramount Global, ROA, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.89% | 16.42% | 2.09% | 12.49% | 9.24% | 1.54% |
| Dec 31, 2021 | 7.75% | 21.16% | 5.13% | 23.72% | 11.48% | 0.98% |
| Dec 31, 2020 | 4.60% | 12.60% | 3.85% | 18.29% | 7.03% | -1.42% |
| Dec 31, 2019 | 6.68% | 12.45% | 4.96% | 13.86% | 5.49% | 5.70% |
| Dec 31, 2018 | 8.97% | 13.20% | 4.66% | 22.72% | 4.66% | 12.78% |
| Dec 31, 2017 | 1.71% | 6.42% | 12.15% | 18.85% | 2.94% | 9.37% |
| Dec 31, 2016 | 5.20% | 11.63% | 4.82% | 15.73% | 1.37% | 10.20% |
| Dec 31, 2015 | 5.95% | 11.09% | 4.90% | 7.46% | 1.20% | 9.51% |
| Dec 31, 2014 | 12.29% | 11.01% | 5.26% | 7.32% | 3.78% | 8.91% |
| Dec 31, 2013 | 7.12% | 11.65% | 4.29% | 8.38% | 2.08% | 7.55% |
| Dec 31, 2012 | 5.95% | 11.45% | 3.76% | 0.35% | 0.43% | 7.59% |
| Dec 31, 2011 | 4.98% | 13.42% | 2.64% | — | 7.37% | 6.66% |
| Dec 31, 2010 | 2.77% | 14.70% | 3.07% | — | 16.38% | 5.73% |
| Dec 31, 2009 | 0.84% | 16.10% | 3.23% | — | 17.04% | 5.24% |
| Dec 31, 2008 | -43.41% | 13.31% | 2.25% | — | 13.44% | 7.08% |
| Dec 31, 2007 | 3.08% | 16.59% | 2.28% | — | 10.35% | 7.69% |
| Dec 31, 2006 | 3.82% | 16.66% | 2.29% | — | 8.06% | 5.62% |
| Dec 31, 2005 | -16.47% | 14.27% | 0.90% | — | 11.52% | 4.77% |
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).
Comparison to Sector (Media & Entertainment)
Paramount Global, ROA, long-term trends, comparison to sector (media & entertainment)
| Paramount Global | Media & Entertainment | |
|---|---|---|
| Dec 31, 2022 | 1.89% | 9.07% |
| Dec 31, 2021 | 7.75% | 13.02% |
| Dec 31, 2020 | 4.60% | 8.04% |
| Dec 31, 2019 | 6.68% | 8.75% |
| Dec 31, 2018 | 8.97% | 11.10% |
| Dec 31, 2017 | 1.71% | 10.43% |
| Dec 31, 2016 | 5.20% | 9.25% |
| Dec 31, 2015 | 5.95% | 7.95% |
| Dec 31, 2014 | 12.29% | 7.95% |
| Dec 31, 2013 | 7.12% | 7.34% |
| Dec 31, 2012 | 5.95% | 6.43% |
| Dec 31, 2011 | 4.98% | 6.19% |
| Dec 31, 2010 | 2.77% | 6.60% |
| Dec 31, 2009 | 0.84% | 6.26% |
| Dec 31, 2008 | -43.41% | 5.43% |
| Dec 31, 2007 | 3.08% | 5.76% |
| Dec 31, 2006 | 3.82% | 4.77% |
| Dec 31, 2005 | -16.47% | 2.98% |
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).
Comparison to Industry (Communication Services)
Paramount Global, ROA, long-term trends, comparison to industry (communication services)
| Paramount Global | Communication Services | |
|---|---|---|
| Dec 31, 2022 | 1.89% | 5.43% |
| Dec 31, 2021 | 7.75% | 8.36% |
| Dec 31, 2020 | 4.60% | 4.69% |
| Dec 31, 2019 | 6.68% | 6.30% |
| Dec 31, 2018 | 8.97% | 7.37% |
| Dec 31, 2017 | 1.71% | 9.22% |
| Dec 31, 2016 | 5.20% | 6.13% |
| Dec 31, 2015 | 5.95% | 5.86% |
| Dec 31, 2014 | 12.29% | 4.94% |
| Dec 31, 2013 | 7.12% | 5.87% |
| Dec 31, 2012 | 5.95% | 3.63% |
| Dec 31, 2011 | 4.98% | 3.13% |
| Dec 31, 2010 | 2.77% | 5.26% |
| Dec 31, 2009 | 0.84% | 4.17% |
| Dec 31, 2008 | -43.41% | 4.53% |
| Dec 31, 2007 | 3.08% | 4.38% |
| Dec 31, 2006 | 3.82% | 3.48% |
| Dec 31, 2005 | -16.47% | 3.57% |
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).