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 analyzed financial data reveals significant fluctuations in net earnings attributable to Paramount over the period from 2005 to 2022. The company experienced pronounced volatility, with notable net losses in 2005 (-$7,089 million) and 2008 (-$11,673 million), while other years demonstrated positive earnings with varying degrees of success. After the sharp loss in 2008, earnings recovered to a moderate positive level, peaking at $4,543 million in 2021 before declining to $1,104 million in 2022.
Total stockholders’ equity shows a fluctuating but generally declining trend in the initial years, dropping from $21,737 million in 2005 to a low of $1,978 million in 2017. Following this low point, equity values increased sharply, reaching $23,036 million by 2022, which suggests a recovery in the company's capital structure and possibly reinvested earnings or capital injections in the latter years.
Return on equity (ROE) has mirrored the volatility seen in net earnings and equity. The ROE was negative and highly volatile in the earlier years, particularly in 2008 with a drastic negative rate of -135.78%. Subsequently, ROE progressively improved, reaching a peak of nearly 70% in 2018, indicative of high profitability relative to equity during this period. However, the last few years show a decline in ROE to below 5% in 2022, signaling reduced efficiency in generating returns for shareholders.
- Net Earnings (Loss)
- The company's net earnings display extreme swings, with large losses in certain years followed by periods of growth and recovery. This pattern suggests exposure to significant one-off charges, market disruptions, or operational challenges in some years.
- Stockholders’ Equity
- Equity levels decreased dramatically until 2017 but then rebounded strongly, indicating a period of financial restructuring or capital raising. The recovery and growth of equity in recent years may be aligned with improved profitability and financial stabilization.
- Return on Equity (ROE)
- ROE's trajectory highlights substantial instability in operational performance. Early negative and highly volatile ROE turned into substantial positive returns by 2018, before declining again toward the end of the period. This dip suggests challenges in sustaining high profitability despite the improved equity base.
Overall, the data reflects a company that has gone through significant financial turbulence, with periods of large losses and capital erosion followed by recovery phases marked by increased equity and resurgent profitability, although recent years indicate caution regarding the sustainability of earnings performance and return on equity.
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).