Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Analysis of Reportable Segments
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- Enterprise Value to FCFF (EV/FCFF)
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- Return on Equity (ROE) since 2005
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Long-term Activity Ratios (Summary)
Paramount Global, long-term (investment) activity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- There is a generally increasing trend in the net fixed asset turnover ratio over the five-year period. Starting at 12 in 2018, the ratio rises moderately to 13.34 in 2019, slightly decreases to 12.68 in 2020, before increasing significantly in the next two years, reaching 16.47 in 2021 and 17.11 in 2022. This indicates an improving efficiency in utilizing net fixed assets to generate revenue, especially after 2020.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This ratio starts at the same value as the net fixed asset turnover in 2018 (12) but then exhibits a sharp decline to 6.91 in 2019, remaining relatively stable with a slight increase to 7.03 in 2020. From 2020 onwards, there is a steady increase reaching 8.49 in 2021 and 9.56 in 2022. The initial drop may reflect the impact of including operating lease and right-of-use assets, with subsequent years showing gradual improvements in utilization efficiency when these assets are considered.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a declining trend from 0.66 in 2018 to a low of 0.48 in 2020, indicating decreasing efficiency in using total assets to generate revenue. However, it stabilizes and slightly improves in the last two years, with values of 0.49 in 2021 and 0.52 in 2022. This suggests a potential recovery or improved asset utilization after 2020.
- Equity Turnover
- Equity turnover shows a marked decreasing trend throughout the period. Starting at a high of 5.18 in 2018, the ratio significantly drops to 2.11 in 2019, then continues to decline to 1.64 in 2020, 1.28 in 2021, and marginally increases to 1.31 in 2022. The steady decline over these years suggests decreasing revenue generation per unit of equity, potentially reflecting changes in equity structure, revenue growth, or both.
Net Fixed Asset Turnover
Paramount Global, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a significant increase from 2018 to 2019, rising from 14,514 million US dollars to 27,812 million US dollars. After this sharp rise, revenues slightly declined in 2020 to 25,285 million US dollars but recovered in the subsequent years, reaching 28,586 million in 2021 and further growing to 30,154 million US dollars by 2022. Overall, there is a clear upward trend in revenues over the five-year period, with a minor dip in 2020.
- Property and Equipment, Net
- The net value of property and equipment increased notably between 2018 and 2019, from 1,209 million US dollars to 2,085 million US dollars. Following this peak, there was a decreasing trend, with values declining to 1,994 million in 2020, 1,736 million in 2021, and slightly recovering to 1,762 million US dollars in 2022. This indicates a reduction in net property and equipment assets after 2019, suggesting possible disposals, depreciation, or lower capital expenditures in the later years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio reflects efficiency in utilizing fixed assets to generate revenues. The ratio increased steadily from 12 in 2018 to 13.34 in 2019, then slightly declined to 12.68 in 2020. Subsequently, it rose significantly in 2021 and 2022, reaching 16.47 and 17.11 respectively. This upward trajectory from 2020 onward implies improved asset utilization efficiency despite the reduction in net fixed assets during that period.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Paramount Global, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The company experienced a significant increase in revenues from 2018 to 2019, with values growing from 14,514 million US dollars to 27,812 million US dollars. After this sharp rise, revenues slightly decreased in 2020 to 25,285 million US dollars but then gradually increased again in the subsequent years, reaching 30,154 million US dollars by 2022. Overall, the revenue demonstrates a positive upward trend with some fluctuations.
- Property and Equipment, Net
- Net value of property and equipment including operating lease right-of-use assets grew substantially from 1,209 million US dollars in 2018 to a peak of 4,024 million US dollars in 2019. Following that, there is a consistent decline over the next three years, reducing to 3,596 million in 2020, 3,366 million in 2021, and further to 3,153 million in 2022. This indicates a contraction or disposal of fixed assets after the peak in 2019.
- Net Fixed Asset Turnover Ratio
- This ratio, which measures efficiency in using fixed assets to generate sales, started at a high level of 12 in 2018, then decreased sharply to approximately 6.91 in 2019. From 2020, the ratio improved steadily, rising to 7.03, then 8.49, and reaching 9.56 by 2022. The initial drop suggests that asset growth outpaced revenue growth in 2019, but subsequent years show enhanced efficiency in leveraging fixed assets to generate revenue.
- Overall Insights
- The data portrays a period of rapid expansion in asset base and revenues in 2019, followed by a gradual optimization phase. The decrease in property and equipment net values along with improving fixed asset turnover ratio after 2019 suggests a strategic focus on better utilization of assets. Revenue growth has been stable after recovering from the 2020 dip, indicating resilience and operational improvement within the company.
Total Asset Turnover
Paramount Global, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenue figures show a generally upward trajectory over the analyzed period. Starting at $14,514 million in 2018, revenues nearly doubled by 2019, reaching $27,812 million. This represents a significant increase within a single year. However, in 2020, revenues saw a decline to $25,285 million. The trend reversed afterward, with revenues rising in 2021 to $28,586 million and continuing to increase in 2022 to $30,154 million, surpassing the pre-2019 peak. Overall, despite some fluctuation, revenues increased substantially over the five-year span.
- Total Assets
- Total assets more than doubled from 2018 to 2019, climbing from $21,859 million to $49,519 million. This sharp increase suggests significant asset acquisitions or revaluations. The subsequent years saw continued growth, but at a slower pace, reaching $52,663 million in 2020 and $58,620 million in 2021. In 2022, there was a slight decline to $58,393 million, indicating relative stabilization. The asset base expanded significantly overall, reflecting growth in the company's scale or investments.
- Total Asset Turnover
- The total asset turnover ratio exhibited a declining trend initially, dropping from 0.66 in 2018 to 0.56 in 2019, and further declining to a low of 0.48 in 2020. This decline indicates a decrease in the efficiency with which assets were used to generate revenues during this period. From 2020 onward, the ratio improved slightly to 0.49 in 2021 and 0.52 in 2022, suggesting a modest recovery in asset utilization efficiency, although it remained below the 2018 level.
- Overall Analysis
- The company experienced strong revenue growth overall, with a notable dip in 2020 likely related to external factors affecting performance. Meanwhile, the asset base expanded dramatically between 2018 and 2019, with slower growth afterward. The efficiency of asset usage declined initially but showed signs of modest improvement in the final years. The data indicate a phase of rapid expansion followed by attempts to enhance operational efficiency amid a larger asset base.
Equity Turnover
Paramount Global, equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total Paramount stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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
Equity turnover = Revenues ÷ Total Paramount stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The revenues exhibited a significant increase from 2018 to 2019, nearly doubling from 14,514 million US dollars to 27,812 million US dollars. However, in 2020, there was a noticeable decline to 25,285 million US dollars, possibly influenced by external economic factors. Revenues rebounded in 2021 and continued a moderate upward trend in 2022, reaching 30,154 million US dollars, the highest value within the period under review.
- Total Paramount stockholders’ equity
- The total stockholders’ equity demonstrated steady growth over the years. Starting at 2,804 million US dollars in 2018, it saw a substantial increase by 2019 to 13,207 million US dollars. This upward trajectory continued, with stockholders’ equity rising to 15,371 million US dollars in 2020, then sharply increasing to 22,402 million US dollars in 2021. The growth rate moderated in 2022, reaching 23,036 million US dollars, indicating sustained strengthening of the equity base.
- Equity turnover ratio
- The equity turnover ratio declined consistently from 2018 through 2021, starting at 5.18 in 2018 and decreasing to 1.28 in 2021. This decline indicates that the company generated less revenue per unit of equity over time, possibly due to the rapid increase in equity relative to revenue growth. In 2022, the ratio stabilized with a slight increase to 1.31, suggesting a potential deceleration in equity expansion or a modest improvement in revenue generation efficiency relative to equity.