Common-Size Income Statement
Quarterly Data
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Verizon Communications Inc., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial performance, as represented by common-size income statements, reveals several notable trends between March 2021 and December 2025. Operating revenues remained consistently at 100% throughout the period, serving as the base for all percentage calculations. A shift in revenue composition is observed, with service revenues and other decreasing from 84.96% to 77.47% in December 2025, while wireless equipment revenues increased from 15.04% to 22.53% over the same timeframe. Cost structure exhibited fluctuations, impacting profitability. Operating income experienced volatility, with a significant dip in December 2023 before a partial recovery.
- Revenue Composition
- The proportion of service revenues to total operating revenues generally declined over the analyzed period. This suggests a growing reliance on wireless equipment revenues. The most significant decrease in service revenue percentage occurred between September 2025 (83.39%) and December 2025 (77.47%). Conversely, wireless equipment revenues demonstrated a consistent upward trend, particularly accelerating in the latter half of the period.
- Cost of Goods Sold
- The combined cost of services and wireless equipment as a percentage of operating revenues remained relatively stable, fluctuating between approximately 41% and 45%. A peak was observed in December 2022 at 44.71%. The cost of wireless equipment showed greater volatility than the cost of services, mirroring the changes in wireless equipment revenue. The cost of wireless equipment as a percentage of operating revenues increased significantly in December 2023, coinciding with the low point in operating income.
- Profitability
- Gross profit as a percentage of operating revenues generally remained above 55%, with fluctuations mirroring revenue and cost trends. Operating income exhibited more significant variability. A substantial decline in operating income percentage occurred in December 2023 (-5.17%), driven by increased costs and potentially other factors. Net income attributable to Verizon followed a similar pattern, reaching a low of -7.70% in December 2023. A recovery in net income is evident in the most recent periods, but remains below levels seen earlier in the analyzed timeframe.
- Operating Expenses
- Selling, general and administrative expense remained relatively consistent as a percentage of operating revenues, generally between 21% and 25%, with a notable increase in September 2024 (29.12%). Depreciation and amortization expense remained stable, fluctuating between 11% and 14%. Interest expense remained relatively consistent, generally between 3% and 5% of operating revenues.
- Other Income and Taxes
- Other income (expense), net, demonstrated considerable fluctuation, ranging from -2.52% to 7.62%. Provision for income taxes generally tracked net income, decreasing during periods of lower profitability and increasing during periods of higher profitability. The effective tax rate varied throughout the period.
Overall, the period demonstrates a shift in revenue mix, with increasing reliance on wireless equipment sales. Profitability experienced significant volatility, particularly in late 2023, influenced by cost increases and other factors. While a recovery is observed in the most recent periods, the overall trend suggests increased pressure on margins.