Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Verizon Communications Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Service revenues and other	111,571)	109,652)	109,625)	110,449)	109,872)
Wireless equipment revenues	23,217)	24,322)	27,210)	23,164)	18,420)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Cost of services	(27,997)	(28,100)	(28,637)	(31,234)	(31,401)
Cost of wireless equipment	(26,100)	(26,787)	(30,496)	(25,067)	(19,800)
Cost of services and wireless equipment	(54,097)	(54,887)	(59,133)	(56,301)	(51,201)
Gross profit	80,691)	79,087)	77,702)	77,312)	77,091)
Selling, general and administrative expense	(34,113)	(32,745)	(30,136)	(28,658)	(31,573)
Depreciation and amortization expense	(17,892)	(17,624)	(17,099)	(16,206)	(16,720)
Verizon Business Group goodwill impairment	—)	(5,841)	—)	—)	—)
Operating income	28,686)	22,877)	30,467)	32,448)	28,798)
Equity in earnings (losses) of unconsolidated businesses	(53)	(53)	44)	145)	(45)
Interest income	336)	354)	146)	48)	65)
Other components of net periodic benefit income (cost)	300)	(938)	2,386)	3,785)	(425)
Net debt extinguishment gains (losses)	385)	308)	(1,077)	(3,541)	(129)
Other, net	(26)	(37)	(82)	20)	(50)
Other income (expense), net	995)	(313)	1,373)	312)	(539)
Interest expense	(6,649)	(5,524)	(3,613)	(3,485)	(4,247)
Income before provision for income taxes	22,979)	16,987)	28,271)	29,420)	23,967)
Provision for income taxes	(5,030)	(4,892)	(6,523)	(6,802)	(5,619)
Net income	17,949)	12,095)	21,748)	22,618)	18,348)
Net income attributable to noncontrolling interests	(443)	(481)	(492)	(553)	(547)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)

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).

Revenue Trends: Service revenues and other remained relatively stable from 2020 to 2024, fluctuating slightly around approximately $110 billion with a marginal increase observed in 2024. Wireless equipment revenues showed a notable increase from 2020 through 2022, peaking at $27.2 billion before declining in the subsequent years to $23.2 billion by 2024. Operating revenues exhibited a gradual upward trend from 2020 until 2022, reaching a high of $136.8 billion, followed by a slight decline in 2023 and a modest recovery in 2024.
Cost Analysis: Cost of services demonstrated a consistent decline over the five-year period, decreasing from approximately $31.4 billion in 2020 to $28.0 billion in 2024. In contrast, the cost of wireless equipment rose steadily, mirroring the increase in related revenues until 2022, with peak costs of $30.5 billion, then decreasing along with revenues in later years. The combined cost of services and wireless equipment mirrored these patterns with an overall rise until 2022 followed by a reduction in 2023 and 2024.
Profitability: Gross profit increased slightly over the years, starting at $77.1 billion in 2020 and reaching $80.7 billion by 2024, suggesting improved cost management or product mix benefits despite revenue fluctuations. However, selling, general, and administrative expenses increased substantially, especially after 2021, which could indicate rising operational costs or investment in growth initiatives. Depreciation and amortization expenses showed a steady increase, reflecting ongoing capital investment or asset base growth.
Exceptional Items and Adjustments: A significant goodwill impairment charge of $5.8 billion was recorded in 2023 related to the Verizon Business Group, adversely impacting operating income for that year. Other income-related items showed variability with occasional gains and losses, contributing to fluctuations in overall profitability.
Operating Income and Net Income: Operating income rose from $28.8 billion in 2020 to a peak of $32.4 billion in 2021, but declined notably to $22.9 billion in 2023, largely affected by the goodwill impairment, before recovering to $28.7 billion in 2024. Net income followed a similar pattern, increasing in 2021, then falling sharply in 2023 to $12.1 billion, and partially recovering to $17.9 billion in 2024. Net income attributable to Verizon exhibited similar trends, indicating that the impairment charge and other factors significantly impacted shareholder earnings in 2023.
Financial Expenses and Other Income: Interest expense increased steadily over the period, from $4.2 billion in 2020 to $6.6 billion in 2024, representing higher borrowing costs or increased debt levels. Interest income also rose but remained much lower than interest expense. Other income (expense), net, displayed inconsistency with gains and losses evident in various years, contributing some volatility to the income before taxes.
Tax Provision: The provision for income taxes varied but generally represented a moderate proportion of income before taxes. A decline in the tax provision was noted in 2023, which corresponded with lower income before taxes due to impairment charges.
Overall Insights: The data indicates a stable revenue base with some volatility in equipment-related sales and costs. The company's profitability was negatively impacted in 2023 by significant impairment charges, resulting in decreased operating and net income. Despite rising costs in administrative expenses and interest, gross profit showed resilience. Recovery in profitability in 2024 suggests partial mitigation of the previous year's challenges. Continuous monitoring of cost control and efficient management of debt and capital expenditures appear essential for sustained financial performance.

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Verizon Communications Inc. (NYSE:VZ)

Income Statement