Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Paramount Global, profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Paramount Global gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Paramount Global operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Paramount Global net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Paramount Global ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Paramount Global ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Paramount Global, gross profit margin 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) | ||||||
| Gross profit | 10,309) | 10,842) | 10,293) | 10,589) | 5,403) | |
| Revenues | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 34.19% | 37.93% | 40.71% | 38.07% | 37.23% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 55.38% | 56.94% | 53.58% | 55.58% | — | |
| Comcast Corp. | 68.53% | 66.96% | 68.02% | 68.39% | — | |
| Meta Platforms Inc. | 78.35% | 80.79% | 80.58% | 81.94% | — | |
| Netflix Inc. | 39.37% | 41.64% | 38.89% | 38.28% | — | |
| Walt Disney Co. | 34.24% | 33.06% | 32.89% | 39.60% | — | |
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).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 10,309 ÷ 30,154 = 34.19%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Paramount Global gross profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Paramount Global, operating profit margin 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) | ||||||
| Operating income | 2,342) | 6,297) | 4,139) | 4,273) | 2,768) | |
| Revenues | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 7.77% | 22.03% | 16.37% | 15.36% | 19.07% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 26.46% | 30.55% | 22.59% | 21.15% | — | |
| Comcast Corp. | 11.56% | 17.89% | 16.89% | 19.39% | — | |
| Meta Platforms Inc. | 24.82% | 39.65% | 38.01% | 33.93% | — | |
| Netflix Inc. | 17.82% | 20.86% | 18.34% | 12.92% | — | |
| Walt Disney Co. | 7.90% | 4.46% | -2.97% | 15.33% | — | |
| Operating Profit Margin, Sector | ||||||
| Media & Entertainment | 20.46% | 26.39% | 20.33% | 21.48% | — | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | 16.70% | 22.45% | 16.35% | 19.85% | — | |
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 2,342 ÷ 30,154 = 7.77%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Paramount Global operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Profit Margin
Paramount Global, net profit margin 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) | ||||||
| Net earnings attributable to Paramount | 1,104) | 4,543) | 2,422) | 3,308) | 1,960) | |
| Revenues | 30,154) | 28,586) | 25,285) | 27,812) | 14,514) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 3.66% | 15.89% | 9.58% | 11.89% | 13.50% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 21.20% | 29.51% | 22.06% | 21.22% | — | |
| Comcast Corp. | 4.42% | 12.17% | 10.17% | 11.99% | — | |
| Meta Platforms Inc. | 19.90% | 33.38% | 33.90% | 26.15% | — | |
| Netflix Inc. | 14.21% | 17.23% | 11.05% | 9.26% | — | |
| Walt Disney Co. | 3.80% | 2.96% | -4.38% | 15.89% | — | |
| Net Profit Margin, Sector | ||||||
| Media & Entertainment | 15.14% | 23.20% | 17.27% | 18.28% | — | |
| Net Profit Margin, Industry | ||||||
| Communication Services | 11.47% | 18.71% | 11.50% | 14.63% | — | |
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 profit margin = 100 × Net earnings attributable to Paramount ÷ Revenues
= 100 × 1,104 ÷ 30,154 = 3.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Paramount Global net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Paramount Global, ROE 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) | ||||||
| Net earnings attributable to Paramount | 1,104) | 4,543) | 2,422) | 3,308) | 1,960) | |
| Total Paramount stockholders’ equity | 23,036) | 22,402) | 15,371) | 13,207) | 2,804) | |
| Profitability Ratio | ||||||
| ROE1 | 4.79% | 20.28% | 15.76% | 25.05% | 69.90% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Alphabet Inc. | 23.41% | 30.22% | 18.09% | 17.05% | — | |
| Comcast Corp. | 6.63% | 14.73% | 11.66% | 15.78% | — | |
| Meta Platforms Inc. | 18.45% | 31.53% | 22.72% | 18.29% | — | |
| Netflix Inc. | 21.62% | 32.28% | 24.96% | 24.62% | — | |
| Walt Disney Co. | 3.31% | 2.25% | -3.43% | 12.44% | — | |
| ROE, Sector | ||||||
| Media & Entertainment | 16.62% | 23.69% | 14.90% | 16.36% | — | |
| ROE, Industry | ||||||
| Communication Services | 13.32% | 20.34% | 11.50% | 15.27% | — | |
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
ROE = 100 × Net earnings attributable to Paramount ÷ Total Paramount stockholders’ equity
= 100 × 1,104 ÷ 23,036 = 4.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Paramount Global ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Assets (ROA)
Paramount Global, ROA 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) | ||||||
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Alphabet Inc. | 16.42% | 21.16% | 12.60% | 12.45% | — | |
| Comcast Corp. | 2.09% | 5.13% | 3.85% | 4.96% | — | |
| Meta Platforms Inc. | 12.49% | 23.72% | 18.29% | 13.86% | — | |
| Netflix Inc. | 9.24% | 11.48% | 7.03% | 5.49% | — | |
| Walt Disney Co. | 1.54% | 0.98% | -1.42% | 5.70% | — | |
| ROA, Sector | ||||||
| Media & Entertainment | 9.07% | 13.02% | 8.04% | 8.75% | — | |
| ROA, Industry | ||||||
| Communication Services | 5.43% | 8.36% | 4.69% | 6.30% | — | |
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
ROA = 100 × Net earnings attributable to Paramount ÷ Total assets
= 100 × 1,104 ÷ 58,393 = 1.89%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Paramount Global ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |