Paramount Global (NASDAQ:PARA)

The analysis of the financial ratios over the five-year period reveals several notable trends in liquidity, leverage, asset efficiency, and profitability.

Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit a declining trend from 2018 through 2020, dropping from approximately 0.66 to 0.48 reported and 0.64 to 0.49 adjusted. There is a slight recovery in the subsequent years, increasing to about 0.52 by 2022. This pattern suggests a reduction in asset utilization efficiency up to 2020, followed by a mild improvement.

Liquidity Ratios

The current ratio shows volatility, with reported values decreasing from 1.48 in 2018 to 1.32 in 2019, then increasing to a peak of 1.76 in 2021 before falling sharply to 1.23 in 2022. Adjusted current ratios reflect a similar pattern but at slightly higher values, peaking at 2.0 in 2021 before declining to 1.35 in 2022. The fluctuations suggest variability in short-term liquidity management, with stronger liquidity in 2020-2021 and some weakening by 2022.

Leverage Ratios

There is a marked and consistent decline in leverage metrics over the period. Reported debt to equity fell significantly from 3.62 in 2018 to 0.69 in 2022, mirrored closely by adjusted figures. Similarly, the debt to capital ratio decreased from around 0.78 to 0.41, indicating a steady reduction in reliance on debt financing. Financial leverage ratios similarly declined from very high levels (7.8 reported) to a lower but still elevated level (2.53 reported). These trends point towards a deliberate deleveraging strategy or improvements in equity base relative to debt.

Profitability Ratios

Profitability as measured by net profit margin, return on equity (ROE), and return on assets (ROA) exhibited variability and an overall diminishing trend towards the end of the period. Net profit margin experienced a decline from double-digit percentages in early years (13.5% reported in 2018) to a low of 3.66% in 2022. ROE followed a similar downward trend, dropping sharply from nearly 70% in 2018 to under 5% in 2022. ROA also decreased substantially from 8.97% to 1.89% reported. Adjusted profitability measures show consistent patterns with slightly differing magnitudes. The sharp decline particularly in the last year suggests challenges impacting earnings efficiency and profitability despite previous years of relative strength.

The financial data exhibits notable trends in revenues, total assets, and asset turnover ratios over the five-year period under review. Revenues show a significant increase from 2018 to 2019, followed by a decline in 2020, and then a recovery and moderate growth through 2021 and 2022. Total assets more than doubled from 2018 to 2019 and continued to increase steadily until 2021, before slightly declining in 2022.

Revenues

There is a sharp rise in revenues from approximately 14.5 billion USD in 2018 to 27.8 billion USD in 2019. This is followed by a decrease to about 25.3 billion USD in 2020, likely reflecting adverse conditions during that year. However, the revenues recover in the subsequent years, reaching over 30 billion USD by 2022, indicating growth and potential resilience in the business operations.

Total Assets

Total assets show a strong upward trend from 21.9 billion USD in 2018 to nearly 50 billion USD in 2019 and continue increasing to approximately 58.6 billion USD in 2021. There is a marginal decrease to 58.4 billion USD in 2022. This substantial growth over the period up to 2021 suggests significant asset acquisition or capital investment, with a plateau or slight contraction in the latest year.

Reported Total Asset Turnover

The reported total asset turnover ratio decreases from 0.66 in 2018 to 0.48 in 2020, reflecting a decline in efficiency in generating revenues from assets during this period. A modest improvement is seen from 2020 onwards, rising to 0.52 by 2022, indicating gradual recovery in asset utilization efficiency.

Adjusted Revenues and Adjusted Total Assets

Adjusted revenues mirror the pattern of reported revenues, with a sharp increase between 2018 and 2019, followed by a drop in 2020, then steady growth through 2021 and 2022. Adjusted total assets follow a similar upward trend, increasing significantly from 2018 to 2019 and further through to 2021 before slightly declining in 2022.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio declines from 0.64 in 2018 to 0.49 in 2020, then remains relatively stable with minor improvements to 0.52 in 2022. This suggests that the core operational asset efficiency degraded significantly during the initial years but stabilized subsequently.

Overall, the data reveals a period of rapid asset growth coupled with fluctuating revenue performance, leading to decreased efficiency in asset utilization in the early years. Recovery in revenue and stabilization in asset turnover ratios in later years indicate an improvement in the company's operational efficiency and asset management. The slight downturn in total assets in the final year may warrant further investigation to determine its implications.

The financial data reveals several notable trends in liquidity and working capital management over the five-year period.

Current Assets

Current assets increased substantially from 6,752 million US dollars in 2018 to a peak of 16,676 million in 2021, demonstrating a strong upward trend. However, there was a decline to 13,734 million in 2022, indicating a contraction in liquid and short-term assets after the peak year.

Current Liabilities

Current liabilities showed a rising trend as well, beginning at 4,573 million in 2018 and climbing steadily to 11,191 million in 2022. The increases in current liabilities were generally consistent year-over-year, suggesting increasing short-term obligations.

Reported Current Ratio

The reported current ratio fluctuated during the period, starting at 1.48 in 2018 and experiencing a dip to 1.32 in 2019. It then increased to a high of 1.76 in 2021, reflecting improved short-term liquidity, before falling sharply to 1.23 in 2022. This latter decline suggests reduced ability to cover current liabilities with current assets compared to previous years.

Adjusted Current Assets

Adjusted current assets mirrored the pattern of unadjusted current assets, rising from 6,793 million in 2018 to a peak of 16,756 million in 2021, before decreasing to 13,845 million in 2022. The adjustment slightly increases the values but does not alter the overall trend.

Adjusted Current Liabilities

Adjusted current liabilities rose from 4,351 million in 2018 to 10,218 million in 2022, following a consistent upward movement similar to the reported values but at slightly lower levels. This indicates that the adjustments reduce liability amounts somewhat, potentially by excluding certain short-term obligations.

Adjusted Current Ratio

The adjusted current ratio began at 1.56 in 2018, declined to 1.44 in 2019, then showed a steady increase to reach 2.00 in 2021, suggesting optimal liquidity conditions in that year. The ratio then decreased to 1.35 in 2022, indicating a reduction in liquidity, albeit remaining higher than the reported ratio for the same year.

Overall, the data portrays a company that expanded its current assets and current liabilities significantly over the period, reaching peak liquidity levels in 2021. The slight decline in asset levels combined with continuing increases in liabilities in 2022 resulted in weakening liquidity ratios, signaling potential caution regarding short-term financial flexibility.

The financial data indicates multiple notable trends over the five-year period.

Total Debt

Total debt increased significantly from 10,152 million USD at the end of 2018 to a peak of 19,733 million USD in 2020. Subsequently, it decreased steadily, reaching 15,846 million USD by the end of 2022. This reflects a strategic reduction in leverage following a period of elevated borrowing.

Total Paramount Stockholders’ Equity

Stockholders’ equity shows a substantial upward trend, rising from 2,804 million USD in 2018 to 23,036 million USD in 2022. This consistent increase suggests improved company valuation and retained earnings growth, contributing to a stronger equity base.

Reported Debt to Equity Ratio

The reported debt to equity ratio dropped dramatically from 3.62 in 2018 to 0.69 by 2022. This decline indicates a significant strengthening of the company’s financial structure, with equity growing faster than debt, thereby reducing financial risk.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported debt, rising from 11,083 million USD in 2018 to 21,622 million USD in 2020 before decreasing to 17,566 million USD in 2022. Adjustments may account for off-balance-sheet liabilities or other factors influencing debt measurement.

Adjusted Total Equity

Adjusted total equity increased consistently from 3,561 million USD in 2018 to 24,914 million USD in 2022. This growth mirrors the trend in stockholders’ equity, confirming the firm’s enhanced capitalization on an adjusted basis.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio similarly declined from 3.11 in 2018 to 0.71 in 2022, underscoring a consistent decrease in leverage when considering adjusted figures. The ratio’s decline in both reported and adjusted forms points to a deliberate deleveraging strategy combined with equity growth.

Overall, the company has demonstrated a marked reduction in debt relative to equity over the analyzed period, indicating improved financial stability. The substantial growth in equity suggests enhanced profitability or successful capital raising, while the initial increase in debt followed by a decrease may reflect investment cycles or refinancing activities. The adjusted figures corroborate these trends, reinforcing the conclusion of strengthened capitalization and prudent financial management.

The financial data exhibits a clear trend of decreasing total and adjusted debt over the five-year period from 2018 to 2022. Initially, total debt increased significantly from approximately $10.2 billion in 2018 to a peak near $19.7 billion in 2020, followed by a steady decline to about $15.8 billion in 2022. A similar pattern is observed for adjusted total debt, which rose from roughly $11.1 billion in 2018 to over $21.6 billion in 2020, then consistently decreased to approximately $17.6 billion by the end of 2022.

Conversely, total and adjusted capital showed continuous growth across the period, peaking in 2021 before a slight decrease in 2022. Total capital escalated from about $13.0 billion in 2018 to around $40.1 billion in 2021, then modestly declined to approximately $38.9 billion in 2022. Adjusted total capital followed the same upward trajectory, increasing from roughly $14.6 billion in 2018 to a high near $44.0 billion in 2021, dipping slightly to about $42.5 billion in 2022.

The reported and adjusted debt to capital ratios decreased steadily, reflecting an improving leverage position over the analyzed years. The reported debt to capital ratio declined from 0.78 in 2018 to 0.41 in 2022, indicating a significant reduction in debt relative to capital. The adjusted debt to capital ratio showed a similar decline, from 0.76 down to 0.41 over the same period. This decrease signals an enhanced balance sheet strength and possibly greater financial stability.

Debt Trends

Total and adjusted debt peaked in 2020 before declining through 2022, suggesting active debt management or repayment strategies.

Capital Trends

Both total and adjusted capital increased substantially from 2018 to 2021, pointing to asset growth or equity increases, with minor reduction in 2022.

Leverage Ratios

The consistent fall in debt to capital ratios reveals a strategic reduction in financial leverage, improving solvency and reducing risk exposure.

The financial data reveals several key trends in the company's asset base, equity position, and financial leverage over the five-year period ending December 31, 2022.

Total Assets

Total assets exhibited a significant increase from 2018 to 2019, more than doubling from approximately $21.9 billion to $49.5 billion. From 2019 onward, total assets continued to grow moderately, reaching a peak of about $58.6 billion in 2021 before slightly declining to approximately $58.4 billion in 2022.

Total Paramount Stockholders’ Equity

Stockholders’ equity demonstrated a strong upward trend throughout the period. Starting from $2.8 billion in 2018, it rose sharply to $13.2 billion in 2019, and continued increasing steadily each subsequent year, reaching $23.0 billion by 2022. This reflects substantial improvements in shareholders’ claim on assets over these years.

Reported Financial Leverage

The reported financial leverage ratio decreased markedly from 7.8 in 2018 to 3.75 in 2019, indicating a significant reduction in leverage relative to equity. This declining trend continued each year, reaching 2.53 by 2022, suggesting a progressively more conservative capital structure with less reliance on debt financing relative to equity.

Adjusted Total Assets

Adjusted total assets followed a pattern similar to total assets but with smaller absolute values. After an initial rise from approximately $22.8 billion in 2018 to $48.7 billion in 2019, the figures gradually increased to around $57.5 billion in 2021 before a slight decline to $57.3 billion in 2022.

Adjusted Total Equity

Adjusted equity also increased consistently during the period. From $3.6 billion in 2018, it grew substantially to $14.5 billion in 2019 and continued upward each year to $24.9 billion in 2022, mirroring the trend in reported stockholders' equity but with slightly higher values, reflecting adjustments made.

Adjusted Financial Leverage

The adjusted financial leverage ratio declined from 6.4 in 2018 to 3.36 in 2019, showing improved capitalization similar to the reported ratio. This declining leverage trend continued through to 2022, ending at 2.3, indicating a consistent reduction in leverage and enhanced financial stability over the five years.

Overall, the data indicates a marked improvement in the equity base alongside controlled asset growth, resulting in a notable reduction in financial leverage. This suggests an emphasis on strengthening the capital structure and potentially lowering financial risk through reduced reliance on debt.

Net Earnings Attributable to Paramount

The net earnings exhibited considerable volatility over the five-year period. Initial growth was evident from 2018 to 2019, increasing from $1,960 million to $3,308 million. However, a decline followed in 2020 to $2,422 million before a strong recovery in 2021 to $4,543 million. The year 2022 then showed a significant drop to $1,104 million, which represents the lowest point in the period after 2018.

Revenues

Revenues demonstrated an overall upward trend, rising consistently from $14,514 million in 2018 to $30,154 million in 2022. The most pronounced increase occurred between 2018 and 2019, nearly doubling, followed by moderate fluctuations but maintaining steady growth through the subsequent years.

Reported Net Profit Margin

The reported net profit margin showed variability, starting at 13.5% in 2018 then dipping to 11.89% in 2019 and further down to 9.58% in 2020. A peak occurred in 2021 at 15.89%, indicating improved profitability, but this was sharply reversed in 2022 when the margin contracted drastically to 3.66%, signaling reduced efficiency in generating profit relative to revenues.

Adjusted Net Earnings, Paramount and Noncontrolling Interests

Adjusted net earnings followed a generally upward trajectory from 2018 to 2021, increasing from $1,879 million to a high of $4,383 million. In 2022, however, adjusted net earnings fell significantly to $824 million, reflecting a notable decrease from the previous year.

Adjusted Revenues

The adjusted revenues increased from $14,504 million in 2018 to $30,014 million in 2022, mirroring the trend found in reported revenues with steady expansion each year. This indicates consistent growth when accounting for adjustments.

Adjusted Net Profit Margin

The adjusted net profit margin varied during the period, beginning at 12.96% in 2018 and declining to 9.59% in 2019. It then rose to 11.88% in 2020 and peaked at 15.29% in 2021. In 2022, the margin decreased substantially to 2.75%, suggesting decreased profitability despite the increase in adjusted revenues.

Summary Insight

Overall, revenues have demonstrated sustained growth, nearly doubling over the period. Earnings and profit margins, both reported and adjusted, have shown significant fluctuations with a general pattern of improvement until 2021 followed by sharp declines in 2022. The dramatic reduction in profitability indicators in 2022, despite higher revenues, may suggest increased costs, one-time charges, or other adverse factors impacting net income efficiency.

The financial data reveals notable fluctuations in the company's profitability, equity base, and returns on equity from 2018 to 2022. Several key trends emerge upon examination of the provided metrics.

Net Earnings

There is considerable volatility in net earnings attributable to the company over the five-year period. Starting at $1,960 million in 2018, net earnings increased sharply to $3,308 million in 2019, followed by a decline to $2,422 million in 2020. In 2021, net earnings rebounded significantly to a peak of $4,543 million, but then experienced a steep drop to $1,104 million in 2022. This pattern indicates an unstable earnings environment with significant variability year-over-year.

Total Equity

Total stockholders' equity displayed a strong upward trajectory, growing from $2,804 million in 2018 to $23,036 million in 2022. The equity base expanded substantially each year, with particularly large increases between 2018 and 2019, and again between 2020 and 2021. This trend suggests successful capital accumulation or retained earnings growth despite fluctuations in net profits.

Reported Return on Equity (ROE)

The reported ROE reflects a decreasing trend overall, beginning at a very high 69.9% in 2018, then declining to 25.05% in 2019, further to 15.76% in 2020, followed by a slight recovery to 20.28% in 2021, and sharply falling to 4.79% in 2022. The initial ROE figure in 2018 is notably elevated, possibly due to a smaller equity base at that time. The sharp fall in 2022 indicates a substantial reduction in profitability relative to equity.

Adjusted Net Earnings

Adjusted net earnings exhibit a somewhat smoother trend compared to reported net earnings, starting at $1,879 million in 2018, peaking at $3,030 million in 2020, rising further in 2021 to $4,383 million, then dropping significantly to $824 million in 2022. The adjustment appears to moderate the declines observed in some years but does not eliminate the pronounced decrease in 2022.

Adjusted Total Equity

Adjusted total equity follows a pattern similar to total stockholders' equity, increasing steadily from $3,561 million in 2018 to $24,914 million in 2022. The year-over-year growth reflects sustained strengthening of the company’s equity position.

Adjusted Return on Equity

Adjusted ROE starts at 52.77% in 2018, then declines consistently to 18.5% in 2019, 17.2% in 2020, a slight increase to 17.96% in 2021, and lastly a drop to 3.31% in 2022. This trajectory closely mirrors the reported ROE pattern but maintains somewhat higher levels in intermediate years prior to the 2022 decline.

Overall, the data indicates a pattern of substantial equity growth coupled with fluctuating profitability and declining returns on equity, particularly pronounced in the most recent fiscal year. The large decrease in both earnings and ROE in 2022 highlights a challenging operational or market environment impacting earnings performance despite a strong equity base. The adjustments to earnings and equity smooth some variability but confirm the downward trend in profitability metrics towards the end of the period under review.

The annual financial data reveals several notable trends over the five-year period from 2018 to 2022. Paramount experienced significant fluctuations in its net earnings, total assets, and return on assets (ROA), both reported and adjusted.

Net Earnings Attributable to Paramount

Net earnings exhibited considerable variability, starting at $1,960 million in 2018 and peaking at $4,543 million in 2021, before dropping sharply to $1,104 million in 2022. This pattern indicates a strong recovery after 2019's increased earnings, followed by a steep decline in the final year.

Total Assets

Total assets showed a substantial increase from $21,859 million in 2018 to $58,620 million in 2021, signaling growth and potential expansion over the period. However, in 2022, assets slightly decreased to $58,393 million, suggesting stabilization or minor contraction.

Reported Return on Assets (ROA)

The reported ROA declined from 8.97% in 2018 to 4.6% in 2020, indicating reduced profitability relative to assets during this period. A recovery occurred in 2021, with ROA rising to 7.75%, but this was followed by a significant drop to 1.89% in 2022, reflecting diminished efficiency in asset utilization.

Adjusted Net Earnings

Adjusted net earnings, which include amounts attributable to Paramount and noncontrolling interests, increased from $1,879 million in 2018 to $4,383 million in 2021. Similar to reported net earnings, there was a marked decline to $824 million in 2022. This suggests that after adjustments, the earnings trend mirrors the overall volatility observed in reported figures.

Adjusted Total Assets

Adjusted total assets followed a trajectory comparable to total assets, climbing from $22,802 million in 2018 to $57,494 million in 2021, then slightly decreasing to $57,262 million in 2022. This pattern points to consistent asset base growth with minor retreat in the final year.

Adjusted Return on Assets (Adjusted ROA)

The adjusted ROA started at 8.24% in 2018 and declined to 5.85% by 2020, reflecting declining returns relative to adjusted asset levels. An improvement to 7.62% occurred in 2021, followed by a steep drop to 1.44% in 2022, paralleling the pattern in reported ROA and indicating reduced profitability.

Overall, while Paramount Global showed asset growth and earnings resilience leading up to 2021, the sharp declines in both net earnings and ROA in 2022 suggest challenges impacting profitability and asset efficiency during the latest period analyzed.