Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

$24.99

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt maturing within one year
Accounts payable
Accrued expenses
Accrued vacation, salaries and wages
Interest payable
Taxes payable
Accounts payable and accrued liabilities
Current operating lease liabilities
Dividends payable
Contract liability
Other
Other current liabilities
Current liabilities
Long-term debt, excluding maturing within one year
Employee benefit obligations
Deferred income taxes
Non-current operating lease liabilities
Other liabilities
Long-term liabilities
Total liabilities
Series preferred stock, $0.10 par value; none issued
Common stock, $0.10 par value
Additional paid in capital
Retained earnings
Accumulated other comprehensive loss
Common stock in treasury, at cost
Deferred compensation, employee stock ownership plans (ESOPs) and other
Equity attributable to Verizon
Noncontrolling interests
Total equity
Total liabilities and equity

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 financial data reveals several notable trends in the company's liabilities, equity, and overall financial position over the five-year period.

Current Liabilities
There is a consistent increase in current liabilities from 39,660 million US dollars in 2020 to 64,771 million in 2024. The rise is particularly pronounced in debt maturing within one year, which surged from 5,889 million to 22,633 million during this period. Accounts payable shows moderate growth from 6,667 million to 10,425 million, whereas accrued expenses declined substantially from 6,050 million in 2020 to 5,058 million in 2024 after peaking in 2021. Current operating lease liabilities and contract liabilities both demonstrated gradual annual increases. Other current liabilities also expanded steadily, indicating possible growth in miscellaneous short-term obligations.
Long-Term Liabilities
Long-term debt, excluding the portion maturing within one year, decreased overall from 123,173 million in 2020 to 121,381 million in 2024, with some fluctuations in the intermediate years. Employee benefit obligations have diminished from 18,657 million to 11,997 million, consistent with a potential reduction in long-term personnel liabilities. Deferred income taxes steadily increased, suggesting growing tax obligations related to temporary differences. Non-current operating lease liabilities first rose then gradually declined after 2021. Other long-term liabilities increased, reflecting a rise in less defined long-term obligations. The total long-term liabilities exhibited minor fluctuations but ended 2024 below the 2021 peak, indicating controlled long-term debt levels.
Total Liabilities
Total liabilities rose significantly from 247,209 million in 2020 to a peak in 2022 but ultimately settled at 284,136 million in 2024. This upward trend is mainly driven by the sharp increase in current liabilities, especially the surge in debt maturing within one year, signaling increased short-term financial obligations.
Equity
Equity attributable to the company improved steadily, growing from 67,842 million in 2020 to 99,237 million in 2024. Retained earnings followed a strong positive trajectory, indicating earnings retention and profitability. Common stock remained constant, while additional paid-in capital fluctuated slightly without a clear trend. Accumulated other comprehensive loss showed a greater loss peak in 2022 but partially improved afterward, implying varying impacts from comprehensive income components. Treasury stock costs decreased over time, suggesting some repurchases or cost adjustments. The overall total equity increased consistently, reinforcing the strengthening of the company's net asset base.
Combined Analysis
Total liabilities and equity rose from 316,481 million in 2020 to 384,711 million in 2024, indicating overall asset growth. The expansion in short-term debt alongside stable to slightly decreasing long-term debt points to a financing structure increasingly reliant on near-term obligations. The continuous growth in retained earnings supports a solid internal generation of capital, while the improved equity position suggests a strengthening balance sheet despite rising liabilities. The fluctuations in accrued expenses and accrued vacation, salaries, and wages might reflect changes in operational payout timing or workforce management.

In summary, the data indicates that the company has experienced growth in total liabilities primarily due to increased short-term debt levels, while equity has strengthened through retained earnings accumulation. The dynamics between short and long-term debt imply a shift toward near-term financing, warranting attention to liquidity management. Overall, the company’s financial position shows expansion with growing obligations balanced by increased equity, suggesting maintained solvency despite greater short-term pressures.