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).
- United States Asset Turnover
- The asset turnover ratio in the United States exhibited a fluctuating but generally decreasing trend after peaking in 2019. Starting at 0.84 in 2018, the ratio sharply increased to 1.78 in 2019, indicating improved efficiency in generating revenue from assets during that year. However, from 2019 onwards, the ratio declined gradually each year, falling to 1.54 in 2020, 1.45 in 2021, and further to 1.34 in 2022. This downward movement suggests a reduction in asset utilization efficiency or growth in asset base not matched by corresponding revenue increases in the U.S. market over the last three years.
- International Asset Turnover
- The international asset turnover ratio showed a highly volatile pattern over the examined period. It started at a relatively high level of 5.91 in 2018 and more than doubled to 11.35 in 2019, indicating a significant spike in efficiency or revenue generation abroad. However, this peak was followed by a sharp decline to 5.85 in 2020, almost a 50% drop from the previous year. The ratio stabilized marginally in 2021 to 5.87 but then experienced a notable reduction to 3.94 in 2022. Despite the decrease from the peak, the ratio in 2022 remained substantially higher than the U.S. ratio, reflecting sustained efficiency advantages or business characteristics unique to international operations.
- Comparative Insights
- Overall, the data reveals contrasting trends between the domestic and international asset turnovers. While the United States ratio improved initially and then consistently declined, the international ratio experienced extreme volatility with a sharp rise and fall before settling at a moderately high level. The international asset turnover remained significantly higher than the United States turnover throughout the period, indicating more intensive use or higher revenue generation efficiency of assets internationally. The declining trend in both geographic areas after peaking suggests challenges in sustaining asset turnover improvements over multiple years.
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
- Revenues Trend
- Revenues show a significant increase from 2018 to 2019, rising from 11,979 million US dollars to 22,160 million US dollars. Afterward, revenues experienced a slight decline in 2020 to 20,690 million US dollars. From 2020 onward, there is a steady upward trend, reaching 23,320 million US dollars in 2021 and 24,412 million US dollars in 2022, indicating overall growth after the temporary dip.
- Long-lived Assets Trend
- The value of long-lived assets decreases from 14,286 million US dollars in 2018 to 12,417 million US dollars in 2019. This is followed by a gradual increase over the subsequent years, reaching 13,435 million US dollars in 2020, 16,075 million US dollars in 2021, and 18,231 million US dollars in 2022. This suggests the company has been investing in or acquiring more long-term assets following the initial decrease.
- Area Asset Turnover Trend
- Area asset turnover exhibits a peak in 2019 at 1.78, which is a considerable increase from 0.84 in 2018. However, this ratio declines each year thereafter, falling to 1.54 in 2020, 1.45 in 2021, and 1.34 in 2022. The declining trend indicates that the efficiency in generating revenue from the area assets has diminished over the last four years, despite the growth in revenues.
- Summary Insights
- The data reveals rapid revenue growth between 2018 and 2019, followed by a slight decrease and then consistent recovery and growth through 2022. Investment in long-lived assets initially declined but progressively increased from 2019 onwards, suggesting renewed capital expenditure or asset acquisition. The area asset turnover ratio peaked sharply in 2019 but has subsequently decreased, implying that while asset base growth has driven revenue growth, the efficiency of asset utilization in generating revenues has been declining over time.
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
- Revenues
- The revenue trend exhibits a significant increase from 2018 to 2019, almost doubling from 2,535 million USD to 5,652 million USD. However, this is followed by a decline in 2020 to 4,595 million USD. Thereafter, revenues gradually recover, rising to 5,266 million USD in 2021 and further to 5,742 million USD in 2022. Overall, despite a temporary dip in 2020, revenues show an upward trajectory over the five-year period.
- Long-lived assets
- The value of long-lived assets steadily increases each year, starting at 429 million USD in 2018 and reaching 1,458 million USD by 2022. Notably, the growth accelerates in the later years, with a particularly sharp rise between 2021 and 2022. This consistent upward trend indicates ongoing investments or acquisitions of significant assets in the international segment.
- Area asset turnover
- The area asset turnover ratio shows pronounced fluctuations over the period. It nearly doubles from 5.91 in 2018 to 11.35 in 2019, corresponding to the revenue spike in 2019 relative to assets. However, from 2019 onward, the ratio declines sharply to 5.85 in 2020 and remains relatively stable near 5.87 in 2021 before dropping further to 3.94 in 2022. This decreasing trend suggests that asset efficiency in generating revenue has diminished, likely due to the substantial increase in long-lived assets outpacing revenue growth in recent years.
- Summary Insights
- The data reflects strong initial revenue growth followed by stabilization and moderate recovery after a 2020 decline. The continuous and sharp increase in long-lived assets, especially from 2020 onwards, points to substantial capital investment within the international area. However, the declining area asset turnover ratio implies that the added assets have not proportionally translated into higher revenues, suggesting potential challenges in asset utilization efficiency or a shift towards more asset-intensive operations.
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).
- Revenue Trends in the United States
- Revenues in the United States show an overall upward trend from 2018 to 2022. Starting at $11,979 million in 2018, there was a substantial increase to $22,160 million in 2019. After a slight decline to $20,690 million in 2020, revenues continued to rise in 2021 and 2022, reaching $23,320 million and $24,412 million respectively. The data indicates recovery and growth following the 2020 dip.
- International Revenue Patterns
- International revenues displayed notable growth between 2018 and 2019, more than doubling from $2,535 million to $5,652 million. However, in 2020, international revenues declined to $4,595 million. Post-2020, revenues showed gradual recovery, increasing to $5,266 million in 2021 and $5,742 million in 2022. This suggests some volatility internationally, with resilience and progressive improvement during the last two years of the period.
- Total Revenue Evolution
- Total revenues reflect the combined influence of the geographic segments. There was a significant increase from $14,514 million in 2018 to $27,812 million in 2019, followed by a decrease to $25,285 million in 2020. Subsequently, total revenues increased steadily, reaching $28,586 million in 2021 and $30,154 million in 2022. Overall, total revenue growth is positive, despite the interruption in 2020.
- Comparative Observations
- The United States remains the dominant revenue source, contributing the majority share in all periods. Both regions experienced meaningful growth between 2018 and 2019 but faced declines in 2020, likely reflecting external factors affecting revenues that year. Recovery trends are evident in both geographic segments by 2021 and continue through 2022, with the United States segment maintaining a more robust and consistent upward trajectory compared to the International segment.
Long-lived assets
Paramount Global, long-lived assets by geographic area
US$ 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).
- United States Long-Lived Assets
- The value of long-lived assets in the United States shows a fluctuating yet overall increasing trend over the five-year period. Beginning at $14,286 million at the end of 2018, there is a noticeable decline in 2019 to $12,417 million. However, this is followed by a recovery to $13,435 million in 2020, with continued growth to $16,075 million in 2021, and further increase to $18,231 million by the end of 2022. The data suggests strategic reinvestment or acquisition activities in the United States contributing to asset growth after 2019.
- International Long-Lived Assets
- The international segment exhibits a consistent and marked upward trend throughout the period. Starting from a relatively modest base of $429 million in 2018, the assets increased each year, reaching $498 million in 2019, $785 million in 2020, $897 million in 2021, and significantly rising to $1,458 million by the close of 2022. This pattern indicates expanding international investments or asset accumulation, with the growth rate accelerating particularly in the later years.
- Total Long-Lived Assets
- Total long-lived assets reflect the combined trends of domestic and international assets. The total value decreased from $14,715 million in 2018 to $12,915 million in 2019, mirroring the domestic decline. Subsequently, there is a steady increase to $14,220 million in 2020, $16,972 million in 2021, and further to $19,689 million in 2022. The overall growth suggests a strengthening asset base, driven both by recovery and expansion in the domestic market and significant increases internationally.