Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Paramount Global, profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the quarterly financial metrics over the period from March 2019 to March 2023 reveals distinct trends and variations in profitability and returns.
- Gross Profit Margin
- The gross profit margin exhibited a relatively stable pattern initially, fluctuating around the high 30% range from 2019 through early 2021. It peaked near 41.22% in March 2021 but thereafter demonstrated a consistent downward trend, declining progressively to 33.49% by March 2023. This suggests increasing cost pressures or changes in revenue mix affecting the core profitability of goods and services over time.
- Operating Profit Margin
- The operating profit margin showed considerable volatility across the period. From an initial range around 21% in early 2019, it notably declined in 2020, reaching a low point around 12% mid-year, likely impacted by external macroeconomic or sector-specific challenges. There was a recovery spike in late 2021 to above 22%, followed by a sharp and steep decline throughout 2022 into early 2023, where it nearly approached breakeven at 1.13%. This trajectory indicates significant fluctuations in operating efficiency and cost control.
- Net Profit Margin
- Net profit margin followed a pattern broadly consistent with operating margin, though generally lower as expected due to additional expenses and tax impacts. It decreased from around 19% in early 2019 to single digits during the mid-2020 period. Although some improvement was noted in late 2021, achieving approximately 15.89%, the margin contracted again steeply through 2022 and into 2023, turning negative (-1.49%) by the first quarter of 2023. This negative margin signifies a net loss on the company’s operations at that time.
- Return on Equity (ROE)
- The ROE exhibited a pronounced decline over the observed timeframe. Starting at a very high level above 78% in early 2019, the ratio decreased sharply to under 14% by early 2020. Despite minor rebounds in late 2021 reaching above 20%, there was a persistent downward trajectory afterward, culminating in negative returns (-2.05%) in early 2023. This trend highlights diminishing profitability relative to shareholders’ equity and potential challenges in generating profits from invested capital.
- Return on Assets (ROA)
- ROA followed a similar pattern to ROE but measured against total assets. It declined from about 14% in early 2019 to a low around 2.6% mid-2020. Although some gradual improvements occurred into 2021, raising ROA close to 7.75%, the ratio then decreased steadily through 2022 and became negative (-0.79%) in early 2023. The decline indicates decreasing effectiveness in asset utilization to generate net income.
Overall, the data indicate a weakening in both profitability and returns from mid-2019 onwards, with intermittent recoveries followed by further deterioration. The company faced increasing margin compression and reduced effectiveness in leveraging equity and assets to produce profits, culminating in losses during the early part of 2023. These trends suggest operational and financial challenges that may require strategic interventions to restore stable and positive financial performance.
Return on Sales
Return on Investment
Gross Profit Margin
Paramount Global, gross profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Gross profit margin = 100
× (Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022)
÷ (RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends in the company's quarterly performance, focusing on gross profit, revenues, and gross profit margin.
- Gross Profit
- Gross profit exhibited fluctuations throughout the analyzed periods. It began at 2,852 million US dollars in the first quarter of 2019, peaking initially in the second quarter of 2019 at 2,933 million. A significant decline was observed in the fourth quarter of 2019, dropping to 2,065 million. The subsequent quarters of 2020 showed recovery with some volatility, reaching 2,661 million at the end of 2020. In 2021, gross profit values remained relatively stable, with a slight downward tendency towards the end of the year. The years 2022 and the first quarter of 2023 demonstrated a generally declining trend, with gross profit falling to 2,301 million by March 2023.
- Revenues
- Revenue figures portrayed considerable variability but a generally positive trajectory, particularly notable towards the end of the observed timeline. Revenues started at 7,100 million in the first quarter of 2019, maintaining levels around this mark in early 2019 but experienced a dip during 2020, with the lowest value of 5,837 million in the third quarter of 2020. Recovery was evident by the end of 2020 and into 2021, with peaks reaching 8,000 million in the fourth quarter of 2021. The revenues in 2022 and early 2023 maintained elevated levels compared to 2020, although some quarters showed reduction from their peak, concluding with 7,265 million in March 2023.
- Gross Profit Margin
- The gross profit margin started around 39% in early 2019 and remained generally stable through that year with minor fluctuations. In 2020, the margin showed a slight improvement by the end of the year, peaking at 40.71% in the fourth quarter. The margin reached its highest point at 41.22% in the first quarter of 2021 but then experienced a steady decline through 2021 and 2022, decreasing to approximately 33.49% by the first quarter of 2023. This decline indicates a reduction in profitability relative to revenue over this period.
Overall, while revenues displayed a recovery and growth pattern after the 2020 downturn, gross profit and gross profit margin reflect challenges in maintaining profitability levels. The declining gross profit margin during the most recent quarters suggests increasing cost pressures or changes in revenue mix adversely impacting profit efficiency.
Operating Profit Margin
Paramount Global, operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022
+ Operating income (loss)Q3 2022
+ Operating income (loss)Q2 2022)
÷ (RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data displays notable fluctuations in operating income, revenues, and operating profit margin over the quarterly periods analyzed.
- Operating Income (Loss)
- Operating income shows a generally volatile pattern, with significant decreases and recoveries. Starting from a high point of 1,804 million USD in Q1 2019, it declined steadily through 2019, turning slightly negative by Q4 2019 (-13 million USD). In 2020, the operating income fluctuated moderately, ranging between 902 million and 1,251 million USD through the first three quarters, then making a moderate recovery towards the end. The year 2021 saw a resurgence, peaking at 2,664 million USD in Q4, the highest value across the observed period. However, starting from Q1 2022, there was a sharp decline to 775 million USD, continuing downward to a loss of 1,226 million USD by Q1 2023, indicating operational challenges or increased costs impacting profitability.
- Revenues
- Revenues remained relatively stable with slight fluctuations throughout the quarters. The revenue figures hovered around the 6,500 to 7,100 million USD range throughout 2019 and 2020, with a slight dip in mid-2020 correlating possibly with global economic impacts. A notable increase occurred in Q4 2021, reaching 8,000 million USD, the highest revenue in the period analyzed. Subsequent quarters showed volatility with declines and partial recoveries, with revenues at 7,265 million USD in Q1 2023, slightly lower than the prior peak but maintaining overall higher levels compared to early 2019.
- Operating Profit Margin
- The operating profit margin experienced a general downward trend from early 2019 through mid-2020, falling from above 21% to about 12%. A recovery phase is notable from Q4 2020 to Q4 2021, during which margins peaked at 22.03%, indicating improved operational efficiency or pricing power. From 2022 onward, the margin deteriorated sharply, dropping to 1.13% by Q1 2023, which corresponds with the operating income losses and suggests rising cost pressures or adverse market conditions impacting profitability.
Overall, the data reflects a business experiencing cyclical performance with a period of strong profitability in late 2021 but facing significant profitability pressure and losses in the most recent quarters. Revenue volatility is moderate, whereas operating income and margins display more pronounced swings, signaling challenges in managing cost structures or market demand fluctuations in recent periods.
Net Profit Margin
Paramount Global, net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings (loss) attributable to Paramount | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net earnings (loss) attributable to ParamountQ1 2023
+ Net earnings (loss) attributable to ParamountQ4 2022
+ Net earnings (loss) attributable to ParamountQ3 2022
+ Net earnings (loss) attributable to ParamountQ2 2022)
÷ (RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022
+ RevenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance exhibits notable fluctuations over the observed quarterly periods. Revenues demonstrate variability with an overall trend of intermittent increases and decreases, reflecting a cyclical pattern rather than steady growth. Specifically, revenues peaked notably in certain quarters such as December 2021 and December 2022, surpassing 8 billion US dollars, while other quarters like June 2020 and September 2022 show comparatively lower revenue levels, dipping below 6 billion US dollars at some points.
Net earnings attributable to the company display significant volatility. Initial quarters indicate positive net earnings with a peak in March 2019 but subsequent periods reveal sharp declines, including a notable loss reported at the end of 2019. Following this, the earnings recovered moderately through 2020 and 2021, reaching a high in December 2021 with earnings exceeding 2 billion US dollars. However, starting from early 2022, net earnings showed a declining trend, culminating in a loss by the first quarter of 2023.
The net profit margin parallels the changes observed in net earnings, generally moving in positive territory during periods with strong profitability and contracting during times of losses or reduced earnings. The margin peaked around the end of 2021 with values approaching 16%, indicating relatively strong profitability. Yet, from mid-2022 onward, a downward trend is apparent, with margins declining sharply into negative territory by the first quarter of 2023, signaling a contraction in profitability relative to revenues.
- Revenue trends
- Revenues fluctuate across quarters with peaks often observed in the fourth quarter, suggesting seasonality. The highest recorded revenue appears in December 2022, while several intervening quarters show a reduction compared to the immediate prior periods.
- Net earnings volatility
- Net earnings are highly variable, transitioning from strong positive earnings in early periods to occasional losses, peaking in the last quarter of 2021, and declining substantially in early 2023. The losses experienced at the end of the reporting period warrant attention for potential underlying causes affecting profitability.
- Profit margin fluctuations
- The net profit margin reflects the company’s profitability relative to revenue and shows a respectable margin in most positive quarters. Margins frequently improve in quarters with high net earnings and decline sharply during periods of loss, reaching negative values by the end of the data horizon, indicative of profitability challenges.
In summary, the data indicates a business environment characterized by fluctuating revenues with seasonality effects, inconsistent profitability with significant gains in certain periods, and recent challenges impacting net earnings and margins negatively. The trends suggest the company may be facing operational or market-related pressures contributing to the decline in profitability in the most recent quarters.
Return on Equity (ROE)
Paramount Global, ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings (loss) attributable to Paramount | |||||||||||||||||||||||
| Total Paramount stockholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
ROE = 100
× (Net earnings (loss) attributable to ParamountQ1 2023
+ Net earnings (loss) attributable to ParamountQ4 2022
+ Net earnings (loss) attributable to ParamountQ3 2022
+ Net earnings (loss) attributable to ParamountQ2 2022)
÷ Total Paramount stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance and equity position over the observed periods reveal several notable trends and fluctuations. Net earnings attributable to the company display significant volatility, with substantial earnings in some quarters contrasted by losses in others. Specifically, net earnings peaked at 2,058 million US dollars in December 2021, followed by a decline in successive quarters, culminating in a negative value of -1,118 million US dollars by March 2023.
Stockholders' equity generally exhibited an upward trajectory throughout most of the period, increasing from 4,349 million US dollars in March 2019 to a high of 23,036 million US dollars in December 2022. However, a minor decline is observed towards the end of the data series in March 2023, with equity dipping slightly to 21,851 million US dollars.
The Return on Equity (ROE) metric also shows substantial variability. Initially, ROE values were extraordinarily high, exceeding 78% in early 2019, with a peak above 83% in the second quarter of 2019. This initial period is followed by a marked decrease in ROE through 2020, stabilizing around mid to high single digits and low teens, before recovering somewhat to over 20% in the last quarter of 2021. From 2022 onwards, ROE trends downward again, ending in a negative figure of -2.05% by March 2023. This decline signals reduced profitability relative to shareholders' equity and can be attributed to the corresponding decrease in net earnings.
Overall, the equity base grew steadily over time, reflecting capital accumulation or retained earnings despite fluctuations in profitability. The net earnings and ROE trends suggest periods of robust earnings interspersed with downturns, culminating in significant losses and negative returns on equity in the most recent quarter. This pattern invites further investigation into operational challenges, one-time charges, or market conditions impacting profitability during the latter periods.
- Net Earnings (Loss)
- Significant volatility with peaks in late 2021 and substantial losses by early 2023.
- Stockholders’ Equity
- Steady growth from 2019 through 2022 with minor decline in early 2023.
- Return on Equity (ROE)
- Extremely high in early periods with a downward trend starting 2020, a transient recovery in late 2021, and negative performance in early 2023.
Return on Assets (ROA)
Paramount Global, ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings (loss) attributable to Paramount | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2023 Calculation
ROA = 100
× (Net earnings (loss) attributable to ParamountQ1 2023
+ Net earnings (loss) attributable to ParamountQ4 2022
+ Net earnings (loss) attributable to ParamountQ3 2022
+ Net earnings (loss) attributable to ParamountQ2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial results reveals several noteworthy trends and fluctuations over the observed period.
- Net Earnings (Loss) Attributable to Paramount
- The net earnings exhibit significant volatility, with values ranging from a high of 2,058 million US dollars in the fourth quarter of 2021 to a substantial loss of -1,118 million US dollars in the first quarter of 2023. Initially, net earnings declined sharply from 1,959 million US dollars in the first quarter of 2019 to a loss of -258 million US dollars by the end of 2019. There was a recovery phase throughout 2020 and 2021, peaking in the last quarter of 2021. However, starting in 2022, net earnings declined consistently, culminating in a negative outcome by the first quarter of 2023. This pattern highlights a period of financial instability and challenges more recently, despite earlier periods of profitability.
- Total Assets
- Total assets roughly doubled at the end of 2019 compared to the beginning of that year, moving from approximately 24,075 million US dollars to 49,519 million US dollars. Following this jump, total assets demonstrated a steady increase, rising moderately from 49,045 million US dollars in the first quarter of 2020 to a peak of 58,620 million US dollars in the fourth quarter of 2021. Subsequently, there was a slight decline and relative stabilization around 57,000 million US dollars through to the first quarter of 2023. The substantial increase in assets in 2019 suggests significant investment or acquisition activity, followed by a period of asset base stabilization.
- Return on Assets (ROA)
- The ROA started unusually high at 14.16% in the first quarter of 2019, peaking at 16.86% during the third quarter of 2019. This period coincided with a strong asset base and solid net earnings. ROA then dropped significantly toward the end of 2019, reaching a low of 2.63% in the third quarter of 2020. Subsequently, ROA showed moderate recovery and fluctuation, peaking again at 7.75% in the last quarter of 2021. Following this, a declining trend is evident, with ROA falling below zero (-0.79%) by the first quarter of 2023, indicating negative returns on assets in the most recent period. This downward trajectory reflects the deteriorating profitability and efficiency in utilizing assets to generate earnings.
Overall, the financial performance demonstrated cycles of strong profitability and asset growth, followed by phases of declining earnings and profitability. The elevated total assets post-2019 did not translate into consistent profitability, as suggested by the fluctuating and recently negative net earnings and ROA values. The recent downward trends in earnings and returns underscore potential operational or market challenges facing the company.