Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Verizon Communications Inc., Financial Data: Reported vs. Adjusted

Verizon Communications Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Adjustment to Total Assets
Total assets (as reported) 404,258 384,711 380,255 379,680 366,596
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 404,258 384,711 380,255 379,680 366,596
Adjustment to Total Debt
Total debt (as reported) 158,150 144,014 150,674 150,639 150,868
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Current operating lease liabilities 4,542 4,415 4,266 4,134 3,859
Add: Non-current operating lease liabilities 18,951 19,928 20,002 21,558 23,203
Total debt (adjusted) 181,643 168,357 174,942 176,331 177,930

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1, 2 Equal to total present value of future operating lease payments.

Adjusted Financial Ratios for Operating Leases (Summary)

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

Verizon Communications Inc., adjusted financial ratios

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Total Asset Turnover1
Reported total asset turnover 0.34 0.35 0.35 0.36 0.36
Adjusted total asset turnover 0.34 0.35 0.35 0.36 0.36
Debt to Equity2
Reported debt to equity 1.51 1.45 1.63 1.65 1.84
Adjusted debt to equity 1.74 1.70 1.89 1.93 2.18
Return on Assets3 (ROA)
Reported ROA 4.25% 4.55% 3.05% 5.60% 6.02%
Adjusted ROA 4.25% 4.55% 3.05% 5.60% 6.02%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Verizon Communications Inc. adjusted debt to equity ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Verizon Communications Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Adjusted Total Asset Turnover

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Operating revenues 138,191 134,788 133,974 136,835 133,613
Total assets 404,258 384,711 380,255 379,680 366,596
Activity Ratio
Total asset turnover1 0.34 0.35 0.35 0.36 0.36
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Operating revenues 138,191 134,788 133,974 136,835 133,613
Adjusted total assets 404,258 384,711 380,255 379,680 366,596
Activity Ratio
Adjusted total asset turnover2 0.34 0.35 0.35 0.36 0.36

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2025 Calculations

1 Total asset turnover = Operating revenues ÷ Total assets
= 138,191 ÷ 404,258 = 0.34

2 Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 138,191 ÷ 404,258 = 0.34

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Adjusted Debt to Equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Total debt 158,150 144,014 150,674 150,639 150,868
Equity attributable to Verizon 104,460 99,237 92,430 91,144 81,790
Solvency Ratio
Debt to equity1 1.51 1.45 1.63 1.65 1.84
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 181,643 168,357 174,942 176,331 177,930
Equity attributable to Verizon 104,460 99,237 92,430 91,144 81,790
Solvency Ratio
Adjusted debt to equity2 1.74 1.70 1.89 1.93 2.18

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2025 Calculations

1 Debt to equity = Total debt ÷ Equity attributable to Verizon
= 158,150 ÷ 104,460 = 1.51

2 Adjusted debt to equity = Adjusted total debt ÷ Equity attributable to Verizon
= 181,643 ÷ 104,460 = 1.74

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Verizon Communications Inc. adjusted debt-to-equity ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Adjusted Return on Assets (ROA)

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 17,174 17,506 11,614 21,256 22,065
Total assets 404,258 384,711 380,255 379,680 366,596
Profitability Ratio
ROA1 4.25% 4.55% 3.05% 5.60% 6.02%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 17,174 17,506 11,614 21,256 22,065
Adjusted total assets 404,258 384,711 380,255 379,680 366,596
Profitability Ratio
Adjusted ROA2 4.25% 4.55% 3.05% 5.60% 6.02%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

2025 Calculations

1 ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 17,174 ÷ 404,258 = 4.25%

2 Adjusted ROA = 100 × Net income attributable to Verizon ÷ Adjusted total assets
= 100 × 17,174 ÷ 404,258 = 4.25%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Verizon Communications Inc. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.