Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Verizon Communications Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 751 747 673 608 594
Buildings and equipment 36,940 35,382 33,361 32,933 31,216
Central office and other network equipment 170,161 162,001 153,240 160,369 152,733
Antennas, cable, conduit, poles and towers 78,355 75,622 69,733 56,814 52,658
Leasehold improvements 10,355 10,159 9,587 9,497 9,072
Work in progress 12,092 12,889 13,057 8,576 9,234
Furniture, vehicles and other 11,454 10,889 10,246 10,940 10,227
Plant, property and equipment, at cost 320,108 307,689 289,897 279,737 265,734
Accumulated depreciation (211,798) (200,255) (190,201) (184,904) (173,819)
Plant, property and equipment, net 108,310 107,434 99,696 94,833 91,915

Based on: 10-K (reporting date: 2023-12-31), 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).

Item Description The company
Plant, property and equipment, at cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Verizon Communications Inc. plant, property and equipment, at cost increased from 2021 to 2022 and from 2022 to 2023.
Plant, property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Verizon Communications Inc. plant, property and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Verizon Communications Inc., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 66.32% 65.24% 65.76% 66.24% 65.56%
Estimated total useful life (years) 21 21 20 20 18
Estimated age, time elapsed since purchase (years) 14 14 13 13 12
Estimated remaining life (years) 7 7 7 7 6

Based on: 10-K (reporting date: 2023-12-31), 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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Verizon Communications Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Verizon Communications Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Verizon Communications Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Verizon Communications Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 211,798 200,255 190,201 184,904 173,819
Plant, property and equipment, at cost 320,108 307,689 289,897 279,737 265,734
Land 751 747 673 608 594
Asset Age Ratio
Average age1 66.32% 65.24% 65.76% 66.24% 65.56%

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Plant, property and equipment, at cost – Land)
= 100 × 211,798 ÷ (320,108 – 751) = 66.32%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Verizon Communications Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Plant, property and equipment, at cost 320,108 307,689 289,897 279,737 265,734
Land 751 747 673 608 594
Depreciation expense 14,937 14,592 14,119 14,275 14,371
Asset Age Ratio (Years)
Estimated total useful life1 21 21 20 20 18

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Estimated total useful life = (Plant, property and equipment, at cost – Land) ÷ Depreciation expense
= (320,108 – 751) ÷ 14,937 = 21

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Verizon Communications Inc. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 211,798 200,255 190,201 184,904 173,819
Depreciation expense 14,937 14,592 14,119 14,275 14,371
Asset Age Ratio (Years)
Time elapsed since purchase1 14 14 13 13 12

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 211,798 ÷ 14,937 = 14

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Verizon Communications Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Plant, property and equipment, net 108,310 107,434 99,696 94,833 91,915
Land 751 747 673 608 594
Depreciation expense 14,937 14,592 14,119 14,275 14,371
Asset Age Ratio (Years)
Estimated remaining life1 7 7 7 7 6

Based on: 10-K (reporting date: 2023-12-31), 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).

2023 Calculations

1 Estimated remaining life = (Plant, property and equipment, net – Land) ÷ Depreciation expense
= (108,310 – 751) ÷ 14,937 = 7

Asset age ratio Description The company
Estimated remaining life Verizon Communications Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.