Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Verizon Communications Inc., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net income attributable to Verizon1 ÷ Equity attributable to Verizon1
Dec 31, 2025 = 100 × ÷
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Dec 31, 2021 = 100 × ÷
Dec 31, 2020 = 100 × ÷
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Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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

Return on Equity (ROE) for the analyzed period demonstrates significant fluctuations. Initially, a decreasing trend is observed from 2005 through 2009, followed by substantial volatility and then a general stabilization in the later years. The period between 2013 and 2015 exhibits exceptionally high ROE values, while 2006-2009 shows comparatively lower returns.

Initial Decline (2005-2009)
From 2005 to 2009, ROE decreased from 18.64% to 8.78%. This decline coincided with fluctuations in net income attributable to Verizon, which decreased from US$7,397 million in 2005 to US$3,651 million in 2009. Equity attributable to Verizon also experienced changes during this period, initially increasing and then decreasing, contributing to the observed ROE trend.
Volatility and Peak (2010-2015)
The period between 2010 and 2015 is characterized by considerable volatility in ROE. After a low of 6.61% in 2010, ROE increased dramatically, peaking at 108.83% in 2015. This surge is largely attributable to a substantial increase in net income, reaching US$17,879 million in 2015, coupled with a relatively smaller equity base. The equity attributable to Verizon also increased significantly during this period, but not at the same rate as net income.
Stabilization and Recent Trends (2016-2025)
Following the peak in 2015, ROE experienced a decline to 58.28% in 2016 before stabilizing in the range of 23% to 31% between 2017 and 2020. A further decrease to 12.57% is observed in 2022, followed by a recovery to 17.64% and 16.44% in 2023 and 2024 respectively. Both net income and equity attributable to Verizon have generally increased over this period, but the ROE fluctuations suggest changes in the efficiency with which equity is used to generate profits.
Equity Changes
Equity attributable to Verizon generally increased throughout the analyzed period, with a notable decrease in 2008 and a significant drop in 2014. The substantial increase in equity from 2016 onwards suggests potential share issuance or retained earnings accumulation. These equity changes have a direct impact on the ROE calculation, influencing its overall trend.
Net Income Influence
Net income attributable to Verizon demonstrates considerable variability. The high ROE values in 2013, 2014, and 2015 are directly linked to significant increases in net income. Conversely, lower net income figures in earlier years contributed to the lower ROE observed during those periods. The relationship between net income and ROE is evident throughout the entire timeframe.

Comparison to Competitors

Verizon Communications Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel
Verizon Communications Inc. AT&T Inc. T-Mobile US Inc.
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
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Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
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Dec 31, 2011
Dec 31, 2010
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Dec 31, 2008
Dec 31, 2007
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Dec 31, 2005

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 Sector (Telecommunication Services)

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

Microsoft Excel
Verizon Communications Inc. Telecommunication Services
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
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Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
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Dec 31, 2010
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Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

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., ROE, long-term trends, comparison to industry (communication services)

Microsoft Excel
Verizon Communications Inc. Communication Services
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
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Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
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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).