Common-Size Balance Sheet: Assets
Verizon Communications Inc., common-size consolidated balance sheet: assets
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis of the annual financial data reveals several notable trends in the composition of assets over the five-year period ending December 31, 2024.
- Liquidity and Current Assets
- Cash and cash equivalents as a percentage of total assets exhibit a significant decline from 7.01% in 2020 to a low of 0.54% in 2023, followed by a partial recovery to 1.09% in 2024. Accounts receivable, net, shows a stable pattern with a slight decreasing trend from 7.56% in 2020 to 6.45% in 2022, then a mild increase through 2024, reaching 6.79%. Inventories remain relatively stable at low levels around 0.5% to 0.8%. Prepaid taxes fluctuate minimally with a trough at 0.04% in 2022, recovering to 0.21% by 2024. Deferred contract costs demonstrate a mild upward trend, increasing from 0.78% in 2020 to 0.76% in 2024. Collateral payments related to derivative contracts appear starting 2021 with a very low percentage, rising noticeably to 0.55% by 2024. Restricted cash shows a downward trajectory from 0.38% in 2020 to 0.08% in 2024. Overall, current assets decline from 17.25% in 2020 to a range just above 10% thereafter, indicating a shift toward long-term asset holdings.
- Non-Current Assets
- Plant, property, and equipment (net) as a share of total assets decrease from 29.96% in 2020 to approximately 28.21% in 2024, reflecting a moderate relative reduction in tangible fixed assets. Investments in unconsolidated businesses remain marginally stable around 0.2%-0.3%. Wireless licenses increase substantially from 30.36% in 2020 to peak at 40.94% in 2023, slightly decreasing to 40.71% in 2024, signifying significant investment or revaluation in intangible wireless assets. Deposits for wireless licenses are recorded only in 2020 at 0.88% and absent afterward, implying accounting or acquisition completion. Goodwill shows a steady decline from 7.83% in 2020 to 5.94% in 2024, which may indicate amortization, impairment, or divestiture effects. Other intangible assets remain relatively stable between 2.89% and 3.19%. The combined category of wireless licenses, goodwill, and other intangible assets consistently accounts for roughly half of total assets, though it slightly decreases from 51.26% in 2021 to 49.54% in 2024.
- Other Asset Categories
- Operating lease right-of-use assets show a gradual decrease from 7.12% in 2020 to 6.36% in 2024, reflecting possible lease terminations or changes in lease accounting. Other assets increase progressively from 3.44% in 2020 to a peak of 5.23% in 2023, with a slight decrease to 5.14% in 2024, suggesting growth in miscellaneous long-term assets or adjustments therein. Non-current assets as a whole increase significantly from 82.75% in 2020 to around 90% in subsequent years, stabilizing near 89.47% in 2024, highlighting a strategic focus on long-term investment allocation.
In summary, the data indicates a strategic emphasis on long-term and intangible asset investment, particularly wireless licenses, which have grown as a share of total assets. Concurrently, there is a notable contraction in cash and short-term assets, suggesting less liquidity relative to asset size. The decline in goodwill and stable intangible asset proportions may reflect portfolio optimization or asset impairments. Overall, asset composition trends point to a company prioritizing long-term intangible and tangible asset holdings while maintaining relatively consistent accounts receivable and inventory levels.