Return on Equity (ROE)
since 2005
Calculation
Paramount Global, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss) attributable to Paramount1 | ÷ | Total Paramount stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 4.79% | = | 100 | × | 1,104) | ÷ | 23,036) |
| Dec 31, 2021 | 20.28% | = | 100 | × | 4,543) | ÷ | 22,402) |
| Dec 31, 2020 | 15.76% | = | 100 | × | 2,422) | ÷ | 15,371) |
| Dec 31, 2019 | 25.05% | = | 100 | × | 3,308) | ÷ | 13,207) |
| Dec 31, 2018 | 69.90% | = | 100 | × | 1,960) | ÷ | 2,804) |
| Dec 31, 2017 | 18.05% | = | 100 | × | 357) | ÷ | 1,978) |
| Dec 31, 2016 | 34.18% | = | 100 | × | 1,261) | ÷ | 3,689) |
| Dec 31, 2015 | 25.40% | = | 100 | × | 1,413) | ÷ | 5,563) |
| Dec 31, 2014 | 42.45% | = | 100 | × | 2,959) | ÷ | 6,970) |
| Dec 31, 2013 | 18.85% | = | 100 | × | 1,879) | ÷ | 9,966) |
| Dec 31, 2012 | 15.41% | = | 100 | × | 1,574) | ÷ | 10,213) |
| Dec 31, 2011 | 13.17% | = | 100 | × | 1,305) | ÷ | 9,908) |
| Dec 31, 2010 | 7.37% | = | 100 | × | 724) | ÷ | 9,821) |
| Dec 31, 2009 | 2.51% | = | 100 | × | 227) | ÷ | 9,019) |
| Dec 31, 2008 | -135.78% | = | 100 | × | (11,673) | ÷ | 8,597) |
| Dec 31, 2007 | 5.81% | = | 100 | × | 1,247) | ÷ | 21,472) |
| Dec 31, 2006 | 7.06% | = | 100 | × | 1,661) | ÷ | 23,523) |
| Dec 31, 2005 | -32.61% | = | 100 | × | (7,089) | ÷ | 21,737) |
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 equity (ROE) for the period between 2005 and 2022 is characterized by extreme volatility, driven by significant swings in both net earnings and the total stockholders' equity base. The financial performance demonstrates a pattern of deep cyclical troughs followed by periods of aggressive recovery and subsequent capitalization changes.
- Net Earnings Trends
- Net earnings exhibit substantial instability, with severe losses recorded in 2005 (-7.09 billion USD) and 2008 (-11.67 billion USD). A period of consistent profitability followed from 2009 to 2016, reaching a localized peak in 2014 at 2.96 billion USD. After a dip in 2017, earnings grew again to reach a period high of 4.54 billion USD in 2021, before falling sharply to 1.10 billion USD in 2022.
- Stockholders' Equity Dynamics
- The equity base underwent a prolonged contraction from 2005 to 2017, falling from 21.74 billion USD to a low of 1.98 billion USD. This erosion of equity significantly impacted the ROE calculation by reducing the denominator. Starting in 2019, there was a rapid reversal of this trend, with equity increasing to 13.21 billion USD in 2019 and continuing upward to reach 23.04 billion USD by 2022.
- Return on Equity (ROE) Interpretation
- The ROE reached its most extreme negative value in 2008 (-135.78%) due to the convergence of massive net losses and a diminished equity base. The highest ROE peaks occurred between 2014 (42.45%) and 2018 (69.90%), which appears to be a result of lean equity levels rather than proportional growth in earnings. In the most recent period from 2019 to 2022, the ROE trended downward from a high of 25.05% to 4.79%, reflecting a combination of declining net earnings and a significantly expanded equity base.
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, ROE, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 4.79% | 23.41% | 6.63% | 18.45% | 21.62% | 3.31% |
| Dec 31, 2021 | 20.28% | 30.22% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | 15.76% | 18.09% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 25.05% | 17.05% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 69.90% | 17.30% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | 18.05% | 8.30% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | 34.18% | 14.01% | 16.12% | 17.26% | 6.97% | 21.71% |
| Dec 31, 2015 | 25.40% | 13.59% | 15.62% | 8.34% | 5.52% | 18.83% |
| Dec 31, 2014 | 42.45% | 13.82% | 15.90% | 8.14% | 14.36% | 16.68% |
| Dec 31, 2013 | 18.85% | 14.80% | 13.45% | 9.70% | 8.43% | 13.51% |
| Dec 31, 2012 | 15.41% | 14.97% | 12.57% | 0.45% | 2.30% | 14.29% |
| Dec 31, 2011 | 13.17% | 16.75% | 8.80% | — | 35.18% | 12.86% |
| Dec 31, 2010 | 7.37% | 18.39% | 8.20% | — | 55.44% | 10.56% |
| Dec 31, 2009 | 2.51% | 18.11% | 8.52% | — | 58.18% | 9.80% |
| Dec 31, 2008 | -135.78% | 14.97% | 6.30% | — | 23.92% | 13.70% |
| Dec 31, 2007 | 5.81% | 18.53% | 6.26% | — | 15.54% | 15.24% |
| Dec 31, 2006 | 7.06% | 18.06% | 6.15% | — | 11.85% | 10.60% |
| Dec 31, 2005 | -32.61% | 15.56% | 2.31% | — | 18.58% | 9.66% |
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, ROE, long-term trends, comparison to sector (media & entertainment)
| Paramount Global | Media & Entertainment | |
|---|---|---|
| Dec 31, 2022 | 4.79% | 16.62% |
| Dec 31, 2021 | 20.28% | 23.69% |
| Dec 31, 2020 | 15.76% | 14.90% |
| Dec 31, 2019 | 25.05% | 16.36% |
| Dec 31, 2018 | 69.90% | 20.24% |
| Dec 31, 2017 | 18.05% | 17.88% |
| Dec 31, 2016 | 34.18% | 16.09% |
| Dec 31, 2015 | 25.40% | 13.93% |
| Dec 31, 2014 | 42.45% | 13.96% |
| Dec 31, 2013 | 18.85% | 13.73% |
| Dec 31, 2012 | 15.41% | 13.09% |
| Dec 31, 2011 | 13.17% | 13.20% |
| Dec 31, 2010 | 7.37% | 12.67% |
| Dec 31, 2009 | 2.51% | 12.06% |
| Dec 31, 2008 | -135.78% | 11.13% |
| Dec 31, 2007 | 5.81% | 12.13% |
| Dec 31, 2006 | 7.06% | 9.99% |
| Dec 31, 2005 | -32.61% | 6.53% |
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, ROE, long-term trends, comparison to industry (communication services)
| Paramount Global | Communication Services | |
|---|---|---|
| Dec 31, 2022 | 4.79% | 13.32% |
| Dec 31, 2021 | 20.28% | 20.34% |
| Dec 31, 2020 | 15.76% | 11.50% |
| Dec 31, 2019 | 25.05% | 15.27% |
| Dec 31, 2018 | 69.90% | 17.89% |
| Dec 31, 2017 | 18.05% | 22.85% |
| Dec 31, 2016 | 34.18% | 16.35% |
| Dec 31, 2015 | 25.40% | 16.38% |
| Dec 31, 2014 | 42.45% | 14.00% |
| Dec 31, 2013 | 18.85% | 16.63% |
| Dec 31, 2012 | 15.41% | 10.32% |
| Dec 31, 2011 | 13.17% | 8.87% |
| Dec 31, 2010 | 7.37% | 13.88% |
| Dec 31, 2009 | 2.51% | 11.62% |
| Dec 31, 2008 | -135.78% | 12.77% |
| Dec 31, 2007 | 5.81% | 11.11% |
| Dec 31, 2006 | 7.06% | 8.87% |
| Dec 31, 2005 | -32.61% | 10.06% |
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).