Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Common-Size Balance Sheet: Assets 

Verizon Communications Inc., common-size consolidated balance sheet: assets

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash and cash equivalents 4.71 1.09 0.54 0.69 0.80
Accounts receivable, net 6.70 6.79 6.60 6.45 6.50
Inventories 0.60 0.58 0.54 0.63 0.83
Prepaid taxes 0.46 0.21 0.14 0.04 0.30
Deferred contract costs 0.82 0.76 0.72 0.69 0.66
Collateral payments related to derivative contracts 0.27 0.55 0.37 0.60 0.01
Restricted cash 0.07 0.08 0.33 0.35 0.30
Other prepaid expense and other 0.45 0.47 0.43 0.51 0.62
Prepaid expenses and other 2.06% 2.07% 2.00% 2.20% 1.88%
Current assets 14.08% 10.53% 9.68% 9.97% 10.02%
Plant, property and equipment, net 27.08 28.21 28.48 28.30 27.20
Investments in unconsolidated businesses 0.19 0.22 0.25 0.28 0.29
Wireless licenses 38.85 40.71 40.94 39.45 40.27
Goodwill 5.65 5.94 6.01 7.55 7.80
Other intangible assets, net 2.59 2.89 2.91 3.02 3.19
Wireless licenses, goodwill and other intangible assets 47.08% 49.54% 49.85% 50.02% 51.26%
Operating lease right-of-use assets 5.81 6.36 6.50 6.88 7.61
Other assets 5.75 5.14 5.23 4.55 3.64
Non-current assets 85.92% 89.47% 90.32% 90.03% 89.98%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The asset composition of the entity demonstrates significant shifts over the five-year period. A notable trend is the increasing proportion of cash and cash equivalents, rising substantially from 0.80% of total assets in 2021 to 4.71% in 2025. Conversely, the proportion of assets allocated to wireless licenses has decreased over the period, moving from 40.27% in 2021 to 38.85% in 2025. Goodwill also experienced a consistent decline as a percentage of total assets. Current assets showed an overall increase, particularly pronounced in the final year, while non-current assets decreased as a percentage of the total.

Liquidity and Current Assets
Current assets as a percentage of total assets generally remained stable between 9.68% and 10.53% from 2022 to 2024, but experienced a significant increase to 14.08% in 2025. This rise is largely attributable to the substantial increase in cash and cash equivalents. Accounts receivable remained relatively consistent, fluctuating within a narrow range between 6.45% and 6.79%. Inventories exhibited a slight downward trend, decreasing from 0.83% to 0.60% over the period.
Long-Term Investments and Intangibles
Wireless licenses, representing a substantial portion of total assets, decreased from 40.27% in 2021 to 38.85% in 2025. Goodwill experienced a more pronounced decline, falling from 7.80% to 5.65% during the same period. The combined weight of wireless licenses, goodwill, and other intangible assets decreased from 51.26% to 47.08%, indicating a potential shift in asset allocation away from these categories. Investments in unconsolidated businesses also showed a gradual decline.
Other Asset Categories
Operating lease right-of-use assets decreased steadily from 7.61% to 5.81% of total assets. Other assets increased from 3.64% in 2021 to 5.75% in 2025. Prepaid expenses and other showed a slight increase initially, peaking at 2.20% in 2022, before stabilizing around 2.06% - 2.07%. Collateral payments related to derivative contracts experienced volatility, peaking at 0.60% in 2022 before decreasing to 0.27% in 2025. Prepaid taxes showed an initial decrease, followed by an increase in later years.

The observed changes suggest a potential strategic shift in asset management, with an increased focus on liquidity and a reduction in the relative importance of intangible assets and long-term investments. The increase in 'Other assets' warrants further investigation to understand the underlying components driving this trend.

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