Stock Analysis on Net

Paramount Global (NASDAQ:PARA)

This company has been moved to the archive! The financial data has not been updated since May 4, 2023.

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Paramount Global, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 58,393 58,620 52,663 49,519 21,859
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 931
Total assets (adjusted) 58,393 58,620 52,663 49,519 22,790
Adjustment to Total Debt
Total debt (as reported) 15,846 17,709 19,733 18,719 10,152
Add: Operating lease liability (before adoption of FASB Topic 842)2 931
Add: Operating lease liabilities (included in Other current liabilities) 292 325 306 292
Add: Noncurrent operating lease liabilities 1,428 1,598 1,583 1,909
Total debt (adjusted) 17,566 19,632 21,622 20,920 11,083

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, 2 Equal to total present value of future operating lease payments.


Paramount Global, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Paramount Global, adjusted financial ratios

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover1
Reported total asset turnover 0.52 0.49 0.48 0.56 0.66
Adjusted total asset turnover 0.52 0.49 0.48 0.56 0.64
Debt to Equity2
Reported debt to equity 0.69 0.79 1.28 1.42 3.62
Adjusted debt to equity 0.76 0.88 1.41 1.58 3.95
Return on Assets3 (ROA)
Reported ROA 1.89% 7.75% 4.60% 6.68% 8.97%
Adjusted ROA 1.89% 7.75% 4.60% 6.68% 8.60%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Paramount Global adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Paramount Global adjusted debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Paramount Global adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Paramount Global, Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues 30,154 28,586 25,285 27,812 14,514
Total assets 58,393 58,620 52,663 49,519 21,859
Activity Ratio
Total asset turnover1 0.52 0.49 0.48 0.56 0.66
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 30,154 28,586 25,285 27,812 14,514
Adjusted total assets 58,393 58,620 52,663 49,519 22,790
Activity Ratio
Adjusted total asset turnover2 0.52 0.49 0.48 0.56 0.64

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).

2022 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 30,154 ÷ 58,393 = 0.52

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 30,154 ÷ 58,393 = 0.52

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Paramount Global adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total debt 15,846 17,709 19,733 18,719 10,152
Total Paramount stockholders’ equity 23,036 22,402 15,371 13,207 2,804
Solvency Ratio
Debt to equity1 0.69 0.79 1.28 1.42 3.62
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 17,566 19,632 21,622 20,920 11,083
Total Paramount stockholders’ equity 23,036 22,402 15,371 13,207 2,804
Solvency Ratio
Adjusted debt to equity2 0.76 0.88 1.41 1.58 3.95

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).

2022 Calculations

1 Debt to equity = Total debt ÷ Total Paramount stockholders’ equity
= 15,846 ÷ 23,036 = 0.69

2 Adjusted debt to equity = Adjusted total debt ÷ Total Paramount stockholders’ equity
= 17,566 ÷ 23,036 = 0.76

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Paramount Global adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount 1,104 4,543 2,422 3,308 1,960
Total assets 58,393 58,620 52,663 49,519 21,859
Profitability Ratio
ROA1 1.89% 7.75% 4.60% 6.68% 8.97%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings attributable to Paramount 1,104 4,543 2,422 3,308 1,960
Adjusted total assets 58,393 58,620 52,663 49,519 22,790
Profitability Ratio
Adjusted ROA2 1.89% 7.75% 4.60% 6.68% 8.60%

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).

2022 Calculations

1 ROA = 100 × Net earnings attributable to Paramount ÷ Total assets
= 100 × 1,104 ÷ 58,393 = 1.89%

2 Adjusted ROA = 100 × Net earnings attributable to Paramount ÷ Adjusted total assets
= 100 × 1,104 ÷ 58,393 = 1.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Paramount Global adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.