Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Verizon Communications Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.35 0.36 0.36 0.41 0.45
Adjusted 0.35 0.36 0.36 0.40 0.45
Liquidity Ratio
Current Ratio
Reported 0.69 0.75 0.78 1.38 0.84
Adjusted 0.71 0.77 0.80 1.41 0.85
Solvency Ratios
Debt to Equity
Reported 1.63 1.65 1.84 1.90 1.82
Adjusted 1.25 1.29 1.43 1.42 1.36
Debt to Capital
Reported 0.62 0.62 0.65 0.66 0.64
Adjusted 0.55 0.56 0.59 0.59 0.58
Financial Leverage
Reported 4.11 4.17 4.48 4.66 4.75
Adjusted 2.71 2.79 2.95 2.99 2.98
Profitability Ratios
Net Profit Margin
Reported 8.67% 15.53% 16.51% 13.88% 14.61%
Adjusted 11.31% 17.33% 19.21% 15.08% 14.88%
Return on Equity (ROE)
Reported 12.57% 23.32% 26.98% 26.24% 31.38%
Adjusted 10.79% 17.36% 20.60% 18.23% 19.98%
Return on Assets (ROA)
Reported 3.05% 5.60% 6.02% 5.62% 6.60%
Adjusted 3.98% 6.23% 6.99% 6.09% 6.71%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Verizon Communications Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Verizon Communications Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Verizon Communications Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Verizon Communications Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Verizon Communications Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Verizon Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Operating revenues 133,974 136,835 133,613 128,292 131,868
Total assets 380,255 379,680 366,596 316,481 291,727
Activity Ratio
Total asset turnover1 0.35 0.36 0.36 0.41 0.45
Adjusted
Selected Financial Data (US$ in millions)
Operating revenues 133,974 136,835 133,613 128,292 131,868
Adjusted total assets2 381,124 380,333 367,324 317,645 292,376
Activity Ratio
Adjusted total asset turnover3 0.35 0.36 0.36 0.40 0.45

Based on: 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).

1 2023 Calculation
Total asset turnover = Operating revenues ÷ Total assets
= 133,974 ÷ 380,255 = 0.35

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 133,974 ÷ 381,124 = 0.35

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 36,814 37,857 36,728 54,594 37,473
Current liabilities 53,223 50,171 47,160 39,660 44,868
Liquidity Ratio
Current ratio1 0.69 0.75 0.78 1.38 0.84
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 37,831 38,683 37,624 55,846 38,206
Current liabilities 53,223 50,171 47,160 39,660 44,868
Liquidity Ratio
Adjusted current ratio3 0.71 0.77 0.80 1.41 0.85

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 36,814 ÷ 53,223 = 0.69

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 37,831 ÷ 53,223 = 0.71

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Verizon Communications Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 150,674 150,639 150,868 129,062 111,489
Equity attributable to Verizon 92,430 91,144 81,790 67,842 61,395
Solvency Ratio
Debt to equity1 1.63 1.65 1.84 1.90 1.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 174,942 176,331 177,930 150,547 133,143
Adjusted total equity3 140,449 136,557 124,613 106,147 98,187
Solvency Ratio
Adjusted debt to equity4 1.25 1.29 1.43 1.42 1.36

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to Verizon
= 150,674 ÷ 92,430 = 1.63

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 174,942 ÷ 140,449 = 1.25

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Verizon Communications Inc. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 150,674 150,639 150,868 129,062 111,489
Total capital 243,104 241,783 232,658 196,904 172,884
Solvency Ratio
Debt to capital1 0.62 0.62 0.65 0.66 0.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 174,942 176,331 177,930 150,547 133,143
Adjusted total capital3 315,391 312,888 302,543 256,694 231,330
Solvency Ratio
Adjusted debt to capital4 0.55 0.56 0.59 0.59 0.58

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 150,674 ÷ 243,104 = 0.62

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 174,942 ÷ 315,391 = 0.55

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Verizon Communications Inc. adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 380,255 379,680 366,596 316,481 291,727
Equity attributable to Verizon 92,430 91,144 81,790 67,842 61,395
Solvency Ratio
Financial leverage1 4.11 4.17 4.48 4.66 4.75
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 381,124 380,333 367,324 317,645 292,376
Adjusted total equity3 140,449 136,557 124,613 106,147 98,187
Solvency Ratio
Adjusted financial leverage4 2.71 2.79 2.95 2.99 2.98

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to Verizon
= 380,255 ÷ 92,430 = 4.11

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 381,124 ÷ 140,449 = 2.71

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Verizon Communications Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 11,614 21,256 22,065 17,801 19,265
Operating revenues 133,974 136,835 133,613 128,292 131,868
Profitability Ratio
Net profit margin1 8.67% 15.53% 16.51% 13.88% 14.61%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 15,159 23,713 25,670 19,351 19,616
Operating revenues 133,974 136,835 133,613 128,292 131,868
Profitability Ratio
Adjusted net profit margin3 11.31% 17.33% 19.21% 15.08% 14.88%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 11,614 ÷ 133,974 = 8.67%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Operating revenues
= 100 × 15,159 ÷ 133,974 = 11.31%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 11,614 21,256 22,065 17,801 19,265
Equity attributable to Verizon 92,430 91,144 81,790 67,842 61,395
Profitability Ratio
ROE1 12.57% 23.32% 26.98% 26.24% 31.38%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 15,159 23,713 25,670 19,351 19,616
Adjusted total equity3 140,449 136,557 124,613 106,147 98,187
Profitability Ratio
Adjusted ROE4 10.79% 17.36% 20.60% 18.23% 19.98%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 11,614 ÷ 92,430 = 12.57%

2 Adjusted net income. See details »

3 Adjusted total equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 15,159 ÷ 140,449 = 10.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Verizon Communications Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 11,614 21,256 22,065 17,801 19,265
Total assets 380,255 379,680 366,596 316,481 291,727
Profitability Ratio
ROA1 3.05% 5.60% 6.02% 5.62% 6.60%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 15,159 23,713 25,670 19,351 19,616
Adjusted total assets3 381,124 380,333 367,324 317,645 292,376
Profitability Ratio
Adjusted ROA4 3.98% 6.23% 6.99% 6.09% 6.71%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 11,614 ÷ 380,255 = 3.05%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 15,159 ÷ 381,124 = 3.98%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Verizon Communications Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.