Verizon Communications Inc., adjustment to net income attributable to Verizon

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Verizon (as reported)	11,614)	21,256)	22,065)	17,801)	19,265)
Add: Unrealized gain (loss) on marketable securities, net of tax	7)	(25)	(9)	(2)	7)
Net income attributable to Verizon (adjusted)	11,621)	21,231)	22,056)	17,799)	19,272)

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Verizon Communications Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	8.67%	15.53%	16.51%	13.88%	14.61%
Adjusted net profit margin	8.67%	15.52%	16.51%	13.87%	14.61%
Return on Equity (ROE)
Reported ROE	12.57%	23.32%	26.98%	26.24%	31.38%
Adjusted ROE	12.57%	23.29%	26.97%	26.24%	31.39%
Return on Assets (ROA)
Reported ROA	3.05%	5.60%	6.02%	5.62%	6.60%
Adjusted ROA	3.06%	5.59%	6.02%	5.62%	6.61%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	11,614)	21,256)	22,065)	17,801)	19,265)
Operating revenues	133,974)	136,835)	133,613)	128,292)	131,868)
Profitability Ratio
Net profit margin¹	8.67%	15.53%	16.51%	13.88%	14.61%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	11,621)	21,231)	22,056)	17,799)	19,272)
Operating revenues	133,974)	136,835)	133,613)	128,292)	131,868)
Profitability Ratio
Adjusted net profit margin²	8.67%	15.52%	16.51%	13.87%	14.61%

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 11,614 ÷ 133,974 = 8.67%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Verizon ÷ Operating revenues
= 100 × 11,621 ÷ 133,974 = 8.67%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	11,614)	21,256)	22,065)	17,801)	19,265)
Equity attributable to Verizon	92,430)	91,144)	81,790)	67,842)	61,395)
Profitability Ratio
ROE¹	12.57%	23.32%	26.98%	26.24%	31.38%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	11,621)	21,231)	22,056)	17,799)	19,272)
Equity attributable to Verizon	92,430)	91,144)	81,790)	67,842)	61,395)
Profitability Ratio
Adjusted ROE²	12.57%	23.29%	26.97%	26.24%	31.39%

2023 Calculations

¹ ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 11,614 ÷ 92,430 = 12.57%

² Adjusted ROE = 100 × Adjusted net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 11,621 ÷ 92,430 = 12.57%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	11,614)	21,256)	22,065)	17,801)	19,265)
Total assets	380,255)	379,680)	366,596)	316,481)	291,727)
Profitability Ratio
ROA¹	3.05%	5.60%	6.02%	5.62%	6.60%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	11,621)	21,231)	22,056)	17,799)	19,272)
Total assets	380,255)	379,680)	366,596)	316,481)	291,727)
Profitability Ratio
Adjusted ROA²	3.06%	5.59%	6.02%	5.62%	6.61%

2023 Calculations

¹ ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 11,614 ÷ 380,255 = 3.05%

² Adjusted ROA = 100 × Adjusted net income attributable to Verizon ÷ Total assets
= 100 × 11,621 ÷ 380,255 = 3.06%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Verizon Communications Inc. (NYSE:VZ)

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