Dollar Amounts
USD (Millions)
Showing latest financials
Data in millions of USD
Doing some research...
Over the period analyzed, Paramount Global’s revenue showed modest growth between 2020 and 2022, rising from USD 25,285 million in 2020 to USD 30,154 million in 2022. This steady increase, however, was accompanied by notable volatility in profitability. The company maintained a healthy gross profit in 2020 and 2021 at USD 3,925 million and USD 3,954 million respectively, but there was a sharp decline to USD 2,286 million in 2022—a drop of about 42% year-over-year. The deterioration continued with gross profit turning negative in 2023 (USD -451 million) and further plummeting in 2024 to USD -5,269 million. Similar trends are observed for operating income and net income, with operating income peaking in 2021 at USD 6,297 million but then declining to breakeven levels in 2022 (USD 2,342 million) before registering significant losses in subsequent years (USD -451 million in 2023 and USD -5,269 million in 2024). This substantial swing in profitability metrics—exceeding a 20% change in successive years—suggests that while revenue growth has been relatively robust, operating efficiency and margin management have deteriorated dramatically. Such reversals could be driven by increased operational costs, changes in content delivery or monetization strategies, or broader market pressures affecting the media and entertainment industry. Overall, while Paramount Global demonstrated top-line growth initially, the spiraling losses in gross profit, operating income, and net income raise concerns about the company’s short-term financial health and sustainability. It appears critical for management to address the underlying issues impacting margins to restore profitability in a competitive and rapidly evolving industry.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.