Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

Verizon Communications Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The current ratio exhibited considerable fluctuation between 2005 and 2025. Initially, the ratio was below one, indicating potential short-term liquidity concerns, before demonstrating improvement and then experiencing renewed volatility. A general observation is that the current ratio has not consistently remained above 1.0, suggesting the company’s current assets have not always sufficiently covered its current liabilities.

Initial Period (2005-2007)
From 2005 to 2007, the current ratio increased from 0.66 to 0.76. While an improvement, the ratio remained below one, suggesting the company possessed fewer current assets than current liabilities during this period. This could indicate a reliance on financing or asset conversion to meet short-term obligations.
Volatility and Improvement (2008-2013)
The period between 2008 and 2013 saw significant variation. The ratio peaked at 1.01 in both 2008 and 2011, briefly indicating sufficient liquidity. However, it dipped below one in 2009 and 2012. A substantial increase was observed in 2013, reaching a high of 2.62, likely due to a significant rise in current assets. This represents a period of strong short-term financial health.
Subsequent Fluctuations (2014-2025)
Following the peak in 2013, the current ratio decreased to 1.06 in 2014, then declined to 0.64 in 2015, indicating a weakening liquidity position. The ratio fluctuated between 0.63 and 0.91 for the next ten years, never consistently exceeding 1.0. A temporary increase to 1.38 was observed in 2020, but this was not sustained, with the ratio falling back to 0.69 by 2022. The most recent values, 0.63 in 2023 and 0.91 in 2025, suggest continued instability in short-term liquidity.

Overall, the trend suggests the company has faced ongoing challenges in maintaining a consistently healthy current ratio. While periods of strong liquidity have occurred, they have been interspersed with periods where current liabilities exceeded current assets. The recent fluctuations indicate a need for continued monitoring of short-term financial health and potential adjustments to asset and liability management strategies.


Comparison to Competitors


Comparison to Sector (Telecommunication Services)

Verizon Communications Inc., current ratio, long-term trends, comparison to sector (telecommunication services)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Communication Services)

Verizon Communications Inc., current ratio, long-term trends, comparison to industry (communication services)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).