Return on Equity (ROE)
since 2005
Calculation
Verizon Communications Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Verizon1 | ÷ | Equity attributable to Verizon1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 17.64% | = | 100 | × | 17,506) | ÷ | 99,237) |
| Dec 31, 2023 | 12.57% | = | 100 | × | 11,614) | ÷ | 92,430) |
| Dec 31, 2022 | 23.32% | = | 100 | × | 21,256) | ÷ | 91,144) |
| Dec 31, 2021 | 26.98% | = | 100 | × | 22,065) | ÷ | 81,790) |
| Dec 31, 2020 | 26.24% | = | 100 | × | 17,801) | ÷ | 67,842) |
| Dec 31, 2019 | 31.38% | = | 100 | × | 19,265) | ÷ | 61,395) |
| Dec 31, 2018 | 29.22% | = | 100 | × | 15,528) | ÷ | 53,145) |
| Dec 31, 2017 | 69.85% | = | 100 | × | 30,101) | ÷ | 43,096) |
| Dec 31, 2016 | 58.28% | = | 100 | × | 13,127) | ÷ | 22,524) |
| Dec 31, 2015 | 108.83% | = | 100 | × | 17,879) | ÷ | 16,428) |
| Dec 31, 2014 | 78.26% | = | 100 | × | 9,625) | ÷ | 12,298) |
| Dec 31, 2013 | 29.60% | = | 100 | × | 11,497) | ÷ | 38,836) |
| Dec 31, 2012 | 2.64% | = | 100 | × | 875) | ÷ | 33,157) |
| Dec 31, 2011 | 6.68% | = | 100 | × | 2,404) | ÷ | 35,970) |
| Dec 31, 2010 | 6.61% | = | 100 | × | 2,549) | ÷ | 38,569) |
| Dec 31, 2009 | 8.78% | = | 100 | × | 3,651) | ÷ | 41,606) |
| Dec 31, 2008 | 15.41% | = | 100 | × | 6,428) | ÷ | 41,706) |
| Dec 31, 2007 | 10.92% | = | 100 | × | 5,521) | ÷ | 50,581) |
| Dec 31, 2006 | 12.77% | = | 100 | × | 6,197) | ÷ | 48,535) |
| Dec 31, 2005 | 18.64% | = | 100 | × | 7,397) | ÷ | 39,680) |
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
- Net Income Attributable to Verizon
- The net income exhibits significant volatility over the reported periods. Beginning at $7,397 million in 2005, the figure declines steadily until reaching a low of $875 million in 2012. Following this trough, there is a marked recovery with notable peaks in 2013 ($11,497 million) and 2015 ($17,879 million). The highest recorded net income appears in 2017 at $30,101 million. Post-2017, net income shows fluctuations with declines in 2018 and 2023 but remains substantially above the earlier years, indicating a pattern of recovery accompanied by intermittent decreases.
- Equity Attributable to Verizon
- Equity shows a generally upward trajectory across the timeframe, though not without fluctuations. Starting at $39,680 million in 2005, equity increases steadily until 2007, followed by a decline through 2012 reaching $33,157 million. From 2013 onward, equity experiences consistent growth, with a significant jump between 2012 and 2013. Despite some years with relatively slower growth, equity continues this progression to reach $99,237 million by 2024, indicating strengthening shareholder value over the long term.
- Return on Equity (ROE)
- ROE presents considerable variability, reflecting fluctuations in profitability relative to equity. Initially at 18.64% in 2005, ROE decreases overall until 2012 when it hits a low of 2.64%. Subsequently, ROE rises sharply, peaking dramatically in 2015 at 108.83% and remaining elevated through 2017 at 69.85%. After 2017, the ratio trends downward, though it maintains moderate levels above 12% through to 2024. This pattern suggests periods of exceptionally high returns potentially driven by reduced equity or elevated earnings, followed by normalization to more sustainable levels.
- Overall Insights
- The data reveals a company undergoing phases of financial stress and recovery. The early period is characterized by declines in net income, equity, and ROE, reflecting operational or market challenges. The recovery phase starting around 2013 is marked by growth in both net income and equity, along with unusually high ROE values indicative of strong profitability or capital efficiency during those years. The later years depict a stabilization trend with financial measures balancing out, demonstrating resilience and a return to consistent financial performance, though some volatility persists in net income. The increasing equity base further supports long-term growth capacity and shareholder value enhancement.
Comparison to Competitors
Verizon Communications Inc., ROE, long-term trends, comparison to competitors
| Verizon Communications Inc. | AT&T Inc. | T-Mobile US Inc. | |
|---|---|---|---|
| Dec 31, 2024 | 17.64% | 10.49% | 18.37% |
| Dec 31, 2023 | 12.57% | 13.94% | 12.85% |
| Dec 31, 2022 | 23.32% | -8.74% | 3.72% |
| Dec 31, 2021 | 26.98% | 12.07% | 4.38% |
| Dec 31, 2020 | 26.24% | -3.20% | 4.69% |
| Dec 31, 2019 | 31.38% | 7.55% | 12.05% |
| Dec 31, 2018 | 29.22% | 10.52% | 11.68% |
| Dec 31, 2017 | 69.85% | 20.91% | 20.11% |
| Dec 31, 2016 | 58.28% | 10.54% | 8.01% |
| Dec 31, 2015 | 108.83% | 10.88% | 4.43% |
| Dec 31, 2014 | 78.26% | 7.21% | 1.58% |
| Dec 31, 2013 | 29.60% | 20.06% | 0.25% |
| Dec 31, 2012 | 2.64% | 7.86% | — |
| Dec 31, 2011 | 6.68% | 3.74% | — |
| Dec 31, 2010 | 6.61% | 17.79% | — |
| Dec 31, 2009 | 8.78% | 12.30% | — |
| Dec 31, 2008 | 15.41% | 13.35% | — |
| Dec 31, 2007 | 10.92% | 10.36% | — |
| Dec 31, 2006 | 12.77% | 6.37% | — |
| Dec 31, 2005 | 18.64% | 8.75% | — |
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., ROE, long-term trends, comparison to sector (telecommunication services)
| Verizon Communications Inc. | Telecommunication Services | |
|---|---|---|
| Dec 31, 2024 | 17.64% | 15.00% |
| Dec 31, 2023 | 12.57% | 13.18% |
| Dec 31, 2022 | 23.32% | 5.93% |
| Dec 31, 2021 | 26.98% | 14.24% |
| Dec 31, 2020 | 26.24% | 5.32% |
| Dec 31, 2019 | 31.38% | 13.35% |
| Dec 31, 2018 | 29.22% | 14.42% |
| Dec 31, 2017 | 69.85% | 31.03% |
| Dec 31, 2016 | 58.28% | 16.82% |
| Dec 31, 2015 | 108.83% | 20.53% |
| Dec 31, 2014 | 78.26% | 14.08% |
| Dec 31, 2013 | 29.60% | 20.67% |
| Dec 31, 2012 | 2.64% | 6.48% |
| Dec 31, 2011 | 6.68% | 4.49% |
| Dec 31, 2010 | 6.61% | 14.92% |
| Dec 31, 2009 | 8.78% | 11.28% |
| Dec 31, 2008 | 15.41% | 13.98% |
| Dec 31, 2007 | 10.92% | 10.53% |
| Dec 31, 2006 | 12.77% | 8.26% |
| Dec 31, 2005 | 18.64% | 12.91% |
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 Industry (Communication Services)
Verizon Communications Inc., ROE, long-term trends, comparison to industry (communication services)
| Verizon Communications Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 17.64% | 23.08% |
| Dec 31, 2023 | 12.57% | 18.63% |
| Dec 31, 2022 | 23.32% | 13.31% |
| Dec 31, 2021 | 26.98% | 20.33% |
| Dec 31, 2020 | 26.24% | 11.51% |
| Dec 31, 2019 | 31.38% | 15.27% |
| Dec 31, 2018 | 29.22% | 17.88% |
| Dec 31, 2017 | 69.85% | 22.82% |
| Dec 31, 2016 | 58.28% | 16.33% |
| Dec 31, 2015 | 108.83% | 16.29% |
| Dec 31, 2014 | 78.26% | 14.07% |
| Dec 31, 2013 | 29.60% | 16.60% |
| Dec 31, 2012 | 2.64% | 10.26% |
| Dec 31, 2011 | 6.68% | 8.87% |
| Dec 31, 2010 | 6.61% | 13.81% |
| Dec 31, 2009 | 8.78% | 11.54% |
| Dec 31, 2008 | 15.41% | 12.78% |
| Dec 31, 2007 | 10.92% | 11.04% |
| Dec 31, 2006 | 12.77% | 8.78% |
| Dec 31, 2005 | 18.64% | 10.04% |
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).