Net Profit Margin
since 2005
Calculation
Verizon Communications Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Verizon1 | ÷ | Operating revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 12.99% | = | 100 | × | 17,506) | ÷ | 134,788) |
| Dec 31, 2023 | 8.67% | = | 100 | × | 11,614) | ÷ | 133,974) |
| Dec 31, 2022 | 15.53% | = | 100 | × | 21,256) | ÷ | 136,835) |
| Dec 31, 2021 | 16.51% | = | 100 | × | 22,065) | ÷ | 133,613) |
| Dec 31, 2020 | 13.88% | = | 100 | × | 17,801) | ÷ | 128,292) |
| Dec 31, 2019 | 14.61% | = | 100 | × | 19,265) | ÷ | 131,868) |
| Dec 31, 2018 | 11.87% | = | 100 | × | 15,528) | ÷ | 130,863) |
| Dec 31, 2017 | 23.88% | = | 100 | × | 30,101) | ÷ | 126,034) |
| Dec 31, 2016 | 10.42% | = | 100 | × | 13,127) | ÷ | 125,980) |
| Dec 31, 2015 | 13.58% | = | 100 | × | 17,879) | ÷ | 131,620) |
| Dec 31, 2014 | 7.57% | = | 100 | × | 9,625) | ÷ | 127,079) |
| Dec 31, 2013 | 9.54% | = | 100 | × | 11,497) | ÷ | 120,550) |
| Dec 31, 2012 | 0.76% | = | 100 | × | 875) | ÷ | 115,846) |
| Dec 31, 2011 | 2.17% | = | 100 | × | 2,404) | ÷ | 110,875) |
| Dec 31, 2010 | 2.39% | = | 100 | × | 2,549) | ÷ | 106,565) |
| Dec 31, 2009 | 3.39% | = | 100 | × | 3,651) | ÷ | 107,808) |
| Dec 31, 2008 | 6.60% | = | 100 | × | 6,428) | ÷ | 97,354) |
| Dec 31, 2007 | 5.91% | = | 100 | × | 5,521) | ÷ | 93,469) |
| Dec 31, 2006 | 7.03% | = | 100 | × | 6,197) | ÷ | 88,144) |
| Dec 31, 2005 | 9.85% | = | 100 | × | 7,397) | ÷ | 75,112) |
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), 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
An analysis of the financial data over the period from 2005 to 2024 shows varied trends in key performance indicators. The net income attributable to the company experiences fluctuations with notable peaks and troughs. Starting from $7,397 million in 2005, net income generally declines to a low around 2012, with $875 million recorded in that year. Afterwards, there is a substantial recovery and growth, reaching a peak of $30,101 million in 2017. Post-2017, net income again shows volatility but remains higher on average compared to the earlier years, with values oscillating between approximately $11,614 million and $22,065 million, indicating periods of both growth and contraction through 2024.
Operating revenues exhibit a more consistent upward trajectory over the two decades, reflecting growth in core business activities. Beginning at $75,112 million in 2005, revenues increase almost steadily with minor fluctuations, reaching a high of $136,835 million in 2022 before slightly stabilizing around the $134,000 million range in the last two reported years. This steady revenue growth suggests an expanding operational scale or increased pricing power.
The net profit margin demonstrates significant variability, with periods of decline and recovery. The margin starts at 9.85% in 2005 and then declines through the late 2000s and early 2010s, reaching a low of 0.76% in 2012. Following this low point, the margin improves considerably, peaking at 23.88% in 2017, which aligns with the highest net income in the same year, implying enhanced profitability and efficient cost management during that period. In the subsequent years, the margin moderates but remains relatively high compared to the earlier period, fluctuating between approximately 8.67% and 16.51%. The general improvement in profit margin post-2012 indicates stronger operational efficiency and better control over expenses relative to revenues.
Overall, the data suggest a company that underwent a challenging phase in the early 2010s with suppressed profitability and net income but subsequently implemented successful strategies leading to revenue growth, improved profitability, and stronger net income performance in later years. Despite some volatility in recent years, these metrics imply a more resilient financial position compared to the earlier period.
Comparison to Competitors
Verizon Communications Inc., net profit margin, long-term trends, comparison to competitors
| Verizon Communications Inc. | AT&T Inc. | T-Mobile US Inc. | |
|---|---|---|---|
| Dec 31, 2024 | 12.99% | 8.95% | 13.93% |
| Dec 31, 2023 | 8.67% | 11.76% | 10.59% |
| Dec 31, 2022 | 15.53% | -7.06% | 3.25% |
| Dec 31, 2021 | 16.51% | 11.89% | 3.77% |
| Dec 31, 2020 | 13.88% | -3.01% | 4.48% |
| Dec 31, 2019 | 14.61% | 7.67% | 7.71% |
| Dec 31, 2018 | 11.87% | 11.34% | 6.67% |
| Dec 31, 2017 | 23.88% | 18.34% | 11.17% |
| Dec 31, 2016 | 10.42% | 7.92% | 3.92% |
| Dec 31, 2015 | 13.58% | 9.09% | 2.29% |
| Dec 31, 2014 | 7.57% | 4.70% | 0.84% |
| Dec 31, 2013 | 9.54% | 14.17% | 0.14% |
| Dec 31, 2012 | 0.76% | 5.70% | — |
| Dec 31, 2011 | 2.17% | 3.11% | — |
| Dec 31, 2010 | 2.39% | 15.98% | — |
| Dec 31, 2009 | 3.39% | 10.19% | — |
| Dec 31, 2008 | 6.60% | 10.37% | — |
| Dec 31, 2007 | 5.91% | 10.05% | — |
| Dec 31, 2006 | 7.03% | 11.67% | — |
| Dec 31, 2005 | 9.85% | 10.91% | — |
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), 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 Sector (Telecommunication Services)
Verizon Communications Inc., net profit margin, long-term trends, comparison to sector (telecommunication services)
| Verizon Communications Inc. | Telecommunication Services | |
|---|---|---|
| Dec 31, 2024 | 12.99% | 11.75% |
| Dec 31, 2023 | 8.67% | 10.25% |
| Dec 31, 2022 | 15.53% | 4.54% |
| Dec 31, 2021 | 16.51% | 11.81% |
| Dec 31, 2020 | 13.88% | 4.26% |
| Dec 31, 2019 | 14.61% | 10.23% |
| Dec 31, 2018 | 11.87% | 10.95% |
| Dec 31, 2017 | 23.88% | 19.59% |
| Dec 31, 2016 | 10.42% | 8.43% |
| Dec 31, 2015 | 13.58% | 10.29% |
| Dec 31, 2014 | 7.57% | 5.57% |
| Dec 31, 2013 | 9.54% | 10.88% |
| Dec 31, 2012 | 0.76% | 3.35% |
| Dec 31, 2011 | 2.17% | 2.67% |
| Dec 31, 2010 | 2.39% | 9.71% |
| Dec 31, 2009 | 3.39% | 7.01% |
| Dec 31, 2008 | 6.60% | 8.72% |
| Dec 31, 2007 | 5.91% | 8.23% |
| Dec 31, 2006 | 7.03% | 8.96% |
| Dec 31, 2005 | 9.85% | 10.24% |
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), 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., net profit margin, long-term trends, comparison to industry (communication services)
| Verizon Communications Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 12.99% | 20.53% |
| Dec 31, 2023 | 8.67% | 16.48% |
| Dec 31, 2022 | 15.53% | 11.47% |
| Dec 31, 2021 | 16.51% | 18.71% |
| Dec 31, 2020 | 13.88% | 11.50% |
| Dec 31, 2019 | 14.61% | 14.62% |
| Dec 31, 2018 | 11.87% | 16.41% |
| Dec 31, 2017 | 23.88% | 19.78% |
| Dec 31, 2016 | 10.42% | 12.77% |
| Dec 31, 2015 | 13.58% | 12.70% |
| Dec 31, 2014 | 7.57% | 10.14% |
| Dec 31, 2013 | 9.54% | 12.53% |
| Dec 31, 2012 | 0.76% | 7.53% |
| Dec 31, 2011 | 2.17% | 6.73% |
| Dec 31, 2010 | 2.39% | 11.37% |
| Dec 31, 2009 | 3.39% | 9.01% |
| Dec 31, 2008 | 6.60% | 9.64% |
| Dec 31, 2007 | 5.91% | 9.70% |
| Dec 31, 2006 | 7.03% | 10.04% |
| Dec 31, 2005 | 9.85% | 9.49% |
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), 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).