Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Verizon Communications Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Debt maturing within one year 4.61 5.88 3.41 2.62 2.03
Accounts payable 3.01 2.71 2.64 2.30 2.19
Accrued expenses 1.12 1.31 1.36 2.06 2.49
Accrued vacation, salaries and wages 1.20 1.15 1.07 1.04 1.22
Interest payable 0.40 0.40 0.41 0.42 0.43
Taxes payable 0.46 0.49 0.69 0.49 0.44
Accounts payable and accrued liabilities 6.18% 6.08% 6.17% 6.32% 6.77%
Current operating lease liabilities 1.12 1.15 1.12 1.09 1.05
Dividends payable 0.73 0.75 0.74 0.73 0.74
Contract liability 1.87 1.95 1.83 1.73 1.65
Other 0.92 1.03 0.72 0.72 0.62
Other current liabilities 3.52% 3.73% 3.30% 3.19% 3.01%
Current liabilities 15.43% 16.84% 14.00% 13.21% 12.86%
Long-term debt, excluding maturing within one year 34.52 31.55 36.21 37.05 39.12
Employee benefit obligations 2.75 3.12 3.47 3.42 4.20
Deferred income taxes 12.05 12.15 12.04 11.44 11.10
Non-current operating lease liabilities 4.69 5.18 5.26 5.68 6.33
Other liabilities 4.42 5.02 4.35 4.85 3.69
Long-term liabilities 58.41% 57.02% 61.34% 62.43% 64.44%
Total liabilities 73.84% 73.86% 75.33% 75.65% 77.30%
Series preferred stock, $0.10 par value; none issued 0.00 0.00 0.00 0.00 0.00
Common stock, $0.10 par value 0.11 0.11 0.11 0.11 0.12
Additional paid in capital 3.31 3.50 3.58 3.53 3.78
Retained earnings 23.44 23.16 21.81 21.70 19.64
Accumulated other comprehensive loss -0.43 -0.24 -0.36 -0.49 -0.25
Common stock in treasury, at cost -0.81 -0.93 -1.00 -1.06 -1.12
Deferred compensation, employee stock ownership plans (ESOPs) and other 0.22 0.19 0.17 0.21 0.15
Equity attributable to Verizon 25.84% 25.80% 24.31% 24.01% 22.31%
Noncontrolling interests 0.32 0.35 0.36 0.35 0.38
Total equity 26.16% 26.14% 24.67% 24.35% 22.70%
Total liabilities and equity 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 composition of liabilities and stockholders’ equity exhibited several notable trends between 2021 and 2025. Overall, total liabilities decreased slightly as a percentage of total liabilities and equity, while total equity increased, though these changes were not dramatic. Current liabilities showed a marked increase initially, followed by a decrease, while long-term liabilities generally decreased before a slight increase in the final year.

Current Liabilities
Current liabilities as a percentage of the total increased from 12.86% in 2021 to a peak of 16.84% in 2024, before decreasing to 15.43% in 2025. This increase was largely driven by a rise in ‘Other current liabilities’ and ‘Debt maturing within one year’. ‘Accrued expenses’ decreased consistently throughout the period, while ‘Taxes payable’ fluctuated, peaking in 2023 before declining. ‘Contract liability’ showed a steady increase until 2025, where it experienced a slight decrease.
Long-Term Liabilities
Long-term liabilities decreased from 64.44% in 2021 to 57.02% in 2024, before increasing slightly to 58.41% in 2025. The most significant component, ‘Long-term debt, excluding maturing within one year’, demonstrated a consistent decline over the period, though it rebounded in 2025. ‘Deferred income taxes’ remained relatively stable, fluctuating between 11.10% and 12.15%. ‘Employee benefit obligations’ showed a consistent decrease throughout the period.
Equity
Total equity increased from 22.70% in 2021 to 26.16% in 2025. This growth was primarily attributable to increases in ‘Retained earnings’, which rose from 19.64% to 23.44%. ‘Additional paid in capital’ experienced a slight decrease over the period. ‘Common stock in treasury, at cost’ consistently decreased, indicating a reduction in share repurchases. ‘Accumulated other comprehensive loss’ remained relatively small and fluctuated, becoming more negative over the period.
Debt Composition
The proportion of debt maturing within one year increased significantly from 2.03% in 2021 to 5.88% in 2024, before decreasing to 4.61% in 2025. This suggests a potential shift in the company’s debt structure, with a greater reliance on short-term financing in 2024. Overall debt (current and long-term) decreased as a percentage of total liabilities and equity from 77.30% in 2021 to 73.86% in 2024, before increasing slightly to 73.84% in 2025.

The observed trends suggest a dynamic balance sheet management strategy. The initial increase in current liabilities, followed by a decrease, could indicate effective working capital management. The reduction in long-term debt, coupled with the growth in retained earnings, suggests a strengthening financial position. The fluctuations in specific liability accounts warrant further investigation to understand the underlying business drivers.

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