Analysis of Geographic Areas
Paramount Global operates in 2 regions: United States and International.
Area Asset Turnover
Paramount Global, asset turnover by geographic area
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 1.34 | 1.45 | 1.54 | 1.78 | 0.84 |
| International | 3.94 | 5.87 | 5.85 | 11.35 | 5.91 |
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).
The asset turnover ratios across geographic segments reveal a significant disparity in operational efficiency between domestic and international markets, characterized by a synchronous peak in 2019 followed by a general downward trajectory through 2022.
- United States Asset Turnover
- A substantial increase was recorded between 2018 and 2019, with the ratio rising from 0.84 to 1.78. Following this peak, a consistent and gradual decline was observed over the subsequent three years, with values receding to 1.54 in 2020, 1.45 in 2021, and reaching 1.34 by the end of 2022. Despite this late-period decline, the turnover remained higher than the initial 2018 baseline.
- International Asset Turnover
- The international segment exhibited significantly higher volatility and higher overall turnover ratios than the domestic segment. A sharp surge occurred in 2019, reaching a peak of 11.35. This was followed by a rapid correction in 2020 to 5.85, remaining relatively stable in 2021 at 5.87, before experiencing a further decline to 3.94 in 2022, the lowest level recorded for this segment since 2018.
- Comparative Geographic Trends
- International operations consistently generated more revenue per unit of asset compared to United States operations throughout the five-year period. However, both regions demonstrated a loss of asset efficiency starting after 2019. The contraction in the international segment was more severe in absolute terms, while the domestic segment showed a more linear and steady decrease in turnover efficiency.
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Area Asset Turnover: United States
Paramount Global; United States; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 24,412) | 23,320) | 20,690) | 22,160) | 11,979) |
| Long-lived assets | 18,231) | 16,075) | 13,435) | 12,417) | 14,286) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.34 | 1.45 | 1.54 | 1.78 | 0.84 |
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).
1 2022 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 24,412 ÷ 18,231 = 1.34
The financial performance in the United States from 2018 to 2022 is characterized by a significant expansion in revenue and a subsequent increase in long-lived asset investment, resulting in a fluctuating asset turnover efficiency.
- Revenue Trajectory
- Revenues experienced a substantial increase between 2018 and 2019, rising from 11,979 million to 22,160 million. Following a minor contraction in 2020 to 20,690 million, growth resumed steadily, reaching 24,412 million by the end of 2022.
- Long-lived Asset Evolution
- Long-lived assets decreased in 2019 to 12,417 million but entered a period of consistent growth thereafter. From 2019 to 2022, the asset base expanded steadily, ending the period at 18,231 million, representing a significant increase in capital commitment.
- Area Asset Turnover Analysis
- The asset turnover ratio peaked in 2019 at 1.78, driven by the simultaneous surge in revenue and a reduction in the asset base. However, a progressive downward trend is observed from 2020 through 2022, with the ratio declining to 1.34. This compression indicates that the growth in long-lived assets has outpaced revenue growth in the latter years of the period, suggesting a decrease in the efficiency of asset utilization relative to revenue generation.
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Area Asset Turnover: International
Paramount Global; International; area asset turnover calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 5,742) | 5,266) | 4,595) | 5,652) | 2,535) |
| Long-lived assets | 1,458) | 897) | 785) | 498) | 429) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.94 | 5.87 | 5.85 | 11.35 | 5.91 |
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).
1 2022 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 5,742 ÷ 1,458 = 3.94
The international segment exhibits a pattern of accelerating asset investment coupled with fluctuating revenue growth, resulting in a long-term decline in asset utilization efficiency. While revenues have increased overall since 2018, the growth rate of long-lived assets has significantly outpaced revenue generation, leading to a deterioration of the area asset turnover ratio.
- Revenue Trends
- Revenues experienced a substantial increase between 2018 and 2019, rising from 2,535 million to 5,652 million. A contraction occurred in 2020, with revenues falling to 4,595 million, followed by a steady recovery to 5,742 million by the end of 2022. This indicates a volatile but generally upward trajectory in international sales.
- Long-lived Asset Growth
- There is a consistent and accelerating upward trend in long-lived assets. The asset base grew from 429 million in 2018 to 1,458 million in 2022. The most pronounced expansion occurred between 2021 and 2022, where assets increased by approximately 62%, suggesting significant capital expenditure or acquisitions within international markets during this period.
- Area Asset Turnover Analysis
- The asset turnover ratio reached a peak of 11.35 in 2019, driven by a sharp increase in revenue relative to a modest asset base. However, the ratio normalized to approximately 5.85 in 2020 and 5.87 in 2021. By 2022, the ratio declined to 3.94, the lowest point in the observed period. This downward trend reflects a diminishing return on invested assets, as the rapid accumulation of long-lived assets has not been matched by a proportional increase in revenue.
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Revenues
Paramount Global, revenues by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 24,412) | 23,320) | 20,690) | 22,160) | 11,979) |
| International | 5,742) | 5,266) | 4,595) | 5,652) | 2,535) |
| Total | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) |
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).
Total revenues exhibited significant growth over the five-year period, increasing from 14,514 million US dollars in 2018 to 30,154 million US dollars in 2022. The most substantial increase occurred between 2018 and 2019, where total revenue nearly doubled. A moderate contraction was noted in 2020, followed by a consistent recovery and upward trend through the end of 2022.
- United States Revenue Trends
- Revenue from the United States market surged from 11,979 million US dollars in 2018 to 22,160 million US dollars in 2019. Despite a temporary decline to 20,690 million US dollars in 2020, the segment returned to growth, reaching 24,412 million US dollars by the end of 2022. This represents a total increase of approximately 103% over the analyzed period.
- International Revenue Trends
- International revenues followed a similar trajectory to the domestic market, growing from 2,535 million US dollars in 2018 to 5,652 million US dollars in 2019. A more pronounced contraction was observed in 2020, with revenues falling to 4,595 million US dollars, before recovering to 5,742 million US dollars in 2022. The international segment experienced a total growth of approximately 126% from 2018 to 2022.
- Geographic Revenue Concentration
- The revenue mix remained heavily weighted toward the United States throughout the period. The US market contributed approximately 82.5% of total revenue in 2018 and maintained a dominant share of roughly 80.9% by 2022. Although international revenues grew at a slightly higher percentage rate than domestic revenues, the overall geographic distribution of income remained relatively stable, with the US consistently driving the vast majority of total revenue.
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Long-lived assets
Paramount Global, long-lived assets by geographic area
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| United States | 18,231) | 16,075) | 13,435) | 12,417) | 14,286) |
| International | 1,458) | 897) | 785) | 498) | 429) |
| Total | 19,689) | 16,972) | 14,220) | 12,915) | 14,715) |
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).
Total long-lived assets exhibit a general growth trajectory from 2019 through 2022, increasing from 12,915 million US dollars to 19,689 million US dollars. Although a contraction occurred between 2018 and 2019, the subsequent three years demonstrate a consistent and accelerating upward trend in asset accumulation.
- Domestic Asset Trends
- Long-lived assets within the United States experienced an initial decline between 2018 and 2019, decreasing from 14,286 million US dollars to 12,417 million US dollars. Following this dip, a strong recovery trend is observed, with assets rising to 18,231 million US dollars by the end of 2022. This indicates a significant expansion of the domestic asset base in the latter half of the period.
- International Asset Expansion
- International long-lived assets demonstrate uninterrupted year-over-year growth throughout the entire period. From a baseline of 429 million US dollars in 2018, assets grew to 1,458 million US dollars by 2022. The rate of increase for international assets is notably more aggressive on a percentage basis compared to domestic growth, reflecting a steady increase in global investment.
- Geographic Distribution and Concentration
- A high level of geographic concentration in the United States is evident. In 2018, international assets constituted approximately 2.9% of the total long-lived asset base. By the end of 2022, the international share increased to approximately 7.4%. While the United States remains the primary location for long-lived assets, the data indicates a gradual shift toward a more diversified geographic distribution.
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