Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Verizon Communications Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of the solvency metrics from March 2022 through June 2026 reveals a general trend of deleveraging and improved capital structure efficiency, followed by a period of slight volatility in early 2026. While debt-to-equity and leverage ratios showed consistent improvement for the first three years, the interest coverage ratio experienced a significant decline, indicating a reduced margin of safety for debt servicing.
- Debt and Equity Ratios
- A consistent downward trend is observed in the debt-to-equity ratio, which decreased from 1.83 in March 2022 to a low of 1.40 by September 2025. When including operating lease liabilities, the ratio followed a similar trajectory, falling from 2.15 to 1.62 over the same period. However, a reversal occurred in early 2026, with the debt-to-equity ratio peaking at 1.67 in March 2026 before moderating to 1.59 by June 2026.
- Capital and Asset Solvency
- Debt to capital ratios remained relatively stable throughout the analyzed period. The debt to capital ratio declined marginally from 0.65 to a low of 0.58 in September 2025, ending at 0.61 in June 2026. Similarly, the debt to assets ratio maintained a tight range, fluctuating between a high of 0.42 and a low of 0.37, suggesting a consistent proportion of assets financed through debt regardless of overall leverage changes.
- Financial Leverage
- Financial leverage exhibited a steady decline from 4.37 in March 2022 to 3.70 in September 2025, indicating a reduction in the use of debt to acquire additional assets. This trend shifted in the first quarter of 2026, where leverage rose to 4.04, before settling at 3.95 by June 2026.
- Interest Coverage Capacity
- The most significant deterioration is noted in the interest coverage ratio. From a position of strength at 9.97 in March 2022, the ratio declined sharply to 3.21 by September 2024. Although a partial recovery was observed between December 2024 and September 2025, with the ratio peaking at 4.98, it subsequently declined again to 3.95 by June 2026. This represents a substantial decrease in the company's capacity to meet interest obligations from operating earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
Verizon Communications Inc., debt to equity calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Equity attributable to Verizon | 103,920) | 103,309) | 104,460) | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 1.59 | 1.67 | 1.51 | 1.40 | 1.42 | 1.43 | 1.45 | 1.56 | 1.55 | 1.61 | 1.63 | 1.51 | 1.60 | 1.65 | 1.65 | 1.69 | 1.73 | 1.83 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 1.30 | 1.26 | 1.23 | 1.26 | 1.26 | 1.22 | 1.18 | 1.26 | 1.24 | 1.27 | 1.33 | 1.33 | 1.41 | 1.38 | 1.39 | 1.09 | 1.15 | 1.23 | ||||||
| T-Mobile US Inc. | 1.54 | 1.58 | 1.50 | 1.43 | 1.40 | 1.44 | 1.31 | 1.28 | 1.28 | 1.30 | 1.20 | 1.20 | 1.22 | 1.15 | 1.07 | 1.09 | 1.05 | 1.07 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Equity attributable to Verizon
= 165,231 ÷ 103,920 = 1.59
2 Click competitor name to see calculations.
The solvency profile of the organization exhibited a period of consistent deleveraging from early 2022 through mid-2025, followed by a significant increase in leverage during the 2025-2026 period.
- Total Debt Trends
- Between March 31, 2022, and December 31, 2024, total debt demonstrated a general downward trajectory, decreasing from 153,382 million US$ to 144,014 million US$. This stability continued through the third quarter of 2025. However, a notable surge occurred starting December 31, 2025, with debt rising to 158,150 million US$ and peaking at 172,460 million US$ by March 31, 2026, before receding to 165,231 million US$ by June 30, 2026.
- Equity Position
- Equity attributable to the entity showed a sustained growth trend for the majority of the analyzed period. From an initial value of 83,762 million US$ in March 2022, equity climbed steadily to a peak of 105,042 million US$ by September 30, 2025. In the subsequent quarters, equity remained relatively stagnant, fluctuating slightly between 103,309 million US$ and 103,920 million US$.
- Debt to Equity Ratio Analysis
- The debt to equity ratio reflected a significant improvement in solvency from March 2022 through September 2025, falling from 1.83 to a period low of 1.40. This compression was the result of the dual effect of reducing total liabilities and increasing the equity base. This trend reversed sharply in late 2025 and early 2026, with the ratio climbing to 1.67 by March 31, 2026, directly correlating with the spike in total debt. The ratio subsequently moderated to 1.59 by June 30, 2026.
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Debt to Equity (including Operating Lease Liability)
Verizon Communications Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Current operating lease liabilities | 4,835) | 4,720) | 4,542) | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | ||||||
| Non-current operating lease liabilities | 18,392) | 18,692) | 18,951) | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | ||||||
| Total debt (including operating lease liability) | 188,458) | 195,872) | 181,643) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | ||||||
| Equity attributable to Verizon | 103,920) | 103,309) | 104,460) | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.81 | 1.90 | 1.74 | 1.62 | 1.65 | 1.67 | 1.70 | 1.81 | 1.80 | 1.86 | 1.89 | 1.76 | 1.87 | 1.92 | 1.93 | 1.99 | 2.04 | 2.15 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 1.47 | 1.43 | 1.40 | 1.43 | 1.43 | 1.38 | 1.35 | 1.43 | 1.40 | 1.44 | 1.50 | 1.50 | 1.59 | 1.57 | 1.59 | 1.24 | 1.31 | 1.35 | ||||||
| T-Mobile US Inc. | 2.06 | 2.11 | 2.01 | 1.93 | 1.87 | 1.92 | 1.79 | 1.75 | 1.76 | 1.80 | 1.69 | 1.70 | 1.71 | 1.64 | 1.55 | 1.57 | 1.54 | 1.56 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Verizon
= 188,458 ÷ 103,920 = 1.81
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct cyclical pattern characterized by a prolonged period of deleveraging followed by a sharp increase in liabilities toward the end of the observed timeframe.
- Debt to Equity Ratio Trends
- A consistent downward trajectory is evident from March 2022, when the ratio stood at 2.15, reaching a period minimum of 1.62 by September 2025. This trend reflects a systemic improvement in the solvency position, driven by simultaneous debt reduction and equity accumulation. However, this trend reversed sharply in late 2025 and early 2026, with the ratio peaking at 1.90 in March 2026 before moderating to 1.81 by June 2026.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, trended generally downward from 180,161 million USD in March 2022 to a low of 167,714 million USD by March 2025. This stability was disrupted in the final quarters of the period; specifically, between September 2025 and March 2026, debt levels surged from 170,452 million USD to 195,872 million USD, representing a significant increase in total leveraged obligations.
- Equity Growth and Stability
- Equity attributable to the company demonstrated steady growth for the majority of the period, rising from 83,762 million USD in March 2022 to a peak of 105,042 million USD in September 2025. While equity remained relatively stable in 2026, fluctuating between 103,309 million USD and 103,920 million USD, the expansion of the equity base served as a critical buffer that prevented the Debt to Equity ratio from returning to the levels seen in early 2022 despite the spike in total debt.
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Debt to Capital
Verizon Communications Inc., debt to capital calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Equity attributable to Verizon | 103,920) | 103,309) | 104,460) | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | ||||||
| Total capital | 269,151) | 275,769) | 262,610) | 251,817) | 249,059) | 244,371) | 243,251) | 246,967) | 245,449) | 246,032) | 243,104) | 245,132) | 247,891) | 245,736) | 241,783) | 235,375) | 235,073) | 237,144) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.61 | 0.63 | 0.60 | 0.58 | 0.59 | 0.59 | 0.59 | 0.61 | 0.61 | 0.62 | 0.62 | 0.60 | 0.62 | 0.62 | 0.62 | 0.63 | 0.63 | 0.65 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 0.57 | 0.56 | 0.55 | 0.56 | 0.56 | 0.55 | 0.54 | 0.56 | 0.55 | 0.56 | 0.57 | 0.57 | 0.58 | 0.58 | 0.58 | 0.52 | 0.54 | 0.55 | ||||||
| T-Mobile US Inc. | 0.61 | 0.61 | 0.60 | 0.59 | 0.58 | 0.59 | 0.57 | 0.56 | 0.56 | 0.57 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | 0.52 | 0.51 | 0.52 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 165,231 ÷ 269,151 = 0.61
2 Click competitor name to see calculations.
The solvency profile exhibits a period of gradual deleveraging and capital strengthening from early 2022 through late 2025, followed by a notable increase in debt obligations in the first half of 2026.
- Total Debt Analysis
- Total debt remained relatively stable between March 2022 and December 2024, fluctuating within a range of 144.01 billion to 153.38 billion US dollars. A significant upward shift occurred toward the end of the period, with debt levels rising sharply from 146.78 billion US dollars in June 2025 to a peak of 172.46 billion US dollars by March 31, 2026, before declining to 165.23 billion US dollars in June 2026.
- Total Capital Growth
- Total capital showed a consistent upward trajectory for the majority of the observed timeframe, increasing from 237.14 billion US dollars in March 2022 to a maximum of 275.77 billion US dollars in March 2026. This growth in the capital base served to mitigate the impact of debt on the overall solvency ratio during the initial three years of the period.
- Debt to Capital Ratio Trends
- The debt to capital ratio followed a steady downward trend from a high of 0.65 in March 2022 to a low of 0.58 in September 2025, indicating an improvement in the company's financial leverage and solvency. This trend reversed abruptly in 2026, as the ratio rose to 0.63 by March 31, 2026, driven by the surge in total debt. The ratio subsequently moderated to 0.61 by June 30, 2026.
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Debt to Capital (including Operating Lease Liability)
Verizon Communications Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Current operating lease liabilities | 4,835) | 4,720) | 4,542) | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | ||||||
| Non-current operating lease liabilities | 18,392) | 18,692) | 18,951) | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | ||||||
| Total debt (including operating lease liability) | 188,458) | 195,872) | 181,643) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | ||||||
| Equity attributable to Verizon | 103,920) | 103,309) | 104,460) | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | ||||||
| Total capital (including operating lease liability) | 292,378) | 299,181) | 286,103) | 275,494) | 272,954) | 268,436) | 267,594) | 270,526) | 269,152) | 269,968) | 267,372) | 269,811) | 272,847) | 271,216) | 267,475) | 261,511) | 261,582) | 263,923) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.64 | 0.65 | 0.63 | 0.62 | 0.62 | 0.62 | 0.63 | 0.64 | 0.64 | 0.65 | 0.65 | 0.64 | 0.65 | 0.66 | 0.66 | 0.67 | 0.67 | 0.68 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 0.60 | 0.59 | 0.58 | 0.59 | 0.59 | 0.58 | 0.57 | 0.59 | 0.58 | 0.59 | 0.60 | 0.60 | 0.61 | 0.61 | 0.61 | 0.55 | 0.57 | 0.57 | ||||||
| T-Mobile US Inc. | 0.67 | 0.68 | 0.67 | 0.66 | 0.65 | 0.66 | 0.64 | 0.64 | 0.64 | 0.64 | 0.63 | 0.63 | 0.63 | 0.62 | 0.61 | 0.61 | 0.61 | 0.61 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 188,458 ÷ 292,378 = 0.64
2 Click competitor name to see calculations.
The solvency profile exhibits a period of gradual deleveraging followed by a moderate increase in leverage toward the end of the observed period. The debt-to-capital ratio, which incorporates operating lease liabilities, demonstrates a consistent downward trajectory from a peak of 0.68 in March 2022 to a minimum of 0.62 reached between March and September 2025.
- Debt to Capital Ratio Dynamics
- A steady decline in the ratio is observed throughout 2022 and 2023, shifting from 0.68 to 0.65. This trend continued through 2024, reaching 0.63 by year-end. The ratio stabilized at its lowest point of 0.62 during the first three quarters of 2025 before experiencing a reversal, climbing back to 0.65 by March 2026 and settling at 0.64 by June 2026.
- Total Debt Trends
- Total debt, including operating lease liabilities, showed a general contraction from March 2022 ($180,161 million) through December 2024 ($168,357 million). However, a significant increase occurred in late 2025 and early 2026, with debt levels peaking at $195,872 million in March 2026. This sharp increase in obligations drove the subsequent rise in the debt-to-capital ratio during the final quarters of the analysis.
- Total Capital Evolution
- Total capital remained relatively stable between March 2022 ($263,923 million) and December 2024 ($267,594 million), with minor fluctuations. A more pronounced expansion in the capital base occurred starting in 2025, reaching a peak of $299,181 million in March 2026. The growth in total capital partially offset the impact of the increased debt load during the 2025-2026 period, preventing the debt-to-capital ratio from returning to the 0.68 levels seen in early 2022.
The overall trend indicates a strategic reduction in leverage for the first three years, followed by a period of capital expansion and increased borrowing in 2026. Despite the recent uptick in debt, the solvency ratio remains lower than the initial 2022 levels, suggesting a marginally improved long-term capital structure relative to the start of the period.
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Debt to Assets
Verizon Communications Inc., debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Total assets | 410,186) | 417,882) | 404,258) | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.40 | 0.41 | 0.39 | 0.38 | 0.38 | 0.38 | 0.37 | 0.40 | 0.39 | 0.40 | 0.40 | 0.38 | 0.40 | 0.40 | 0.40 | 0.39 | 0.40 | 0.42 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 0.34 | 0.33 | 0.32 | 0.33 | 0.33 | 0.32 | 0.31 | 0.33 | 0.33 | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | 0.34 | 0.31 | 0.32 | 0.36 | ||||||
| T-Mobile US Inc. | 0.41 | 0.41 | 0.40 | 0.40 | 0.40 | 0.41 | 0.39 | 0.39 | 0.38 | 0.39 | 0.37 | 0.37 | 0.38 | 0.37 | 0.35 | 0.36 | 0.35 | 0.36 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 165,231 ÷ 410,186 = 0.40
2 Click competitor name to see calculations.
The solvency profile exhibits a high degree of stability, with the debt-to-assets ratio fluctuating within a narrow band between 0.37 and 0.42 over the analyzed period. A general trend of slight deleveraging is observed from March 2022 through December 2024, followed by a period of increased capital activity in 2025 and early 2026.
- Total Debt Dynamics
- Total debt remained relatively range-bound between 147 billion and 153 billion US dollars for the majority of the period. A notable decline occurred toward the end of 2024, reaching a low of 143.6 billion US dollars in December. However, a significant upward shift is evident starting in late 2025, with debt peaking at 172.5 billion US dollars by March 31, 2026, before moderating to 165.2 billion US dollars by June 30, 2026.
- Total Asset Expansion
- The asset base demonstrated a consistent long-term growth trajectory. Assets increased from 365.7 billion US dollars in March 2022 to 384.7 billion US dollars by December 2024. This growth accelerated significantly in the final phase of the analysis, with total assets rising to a peak of 417.9 billion US dollars in March 2026, coinciding with the peak in total debt.
- Debt to Assets Ratio Interpretation
- The ratio remained remarkably consistent, indicating that changes in debt levels were largely offset by corresponding changes in the asset base. The ratio reached its lowest point of 0.37 in December 2024. The subsequent spike in debt during early 2026 did not lead to a significant deterioration in solvency, as the ratio only rose to 0.41 in March 2026 and returned to 0.40 by June 2026, suggesting that the additional borrowing was utilized to acquire proportional assets.
Overall, the financial position reflects a disciplined management of leverage. The simultaneous increase in both debt and assets during the 2025-2026 period suggests a strategic expansion or capital investment phase that was executed without compromising the company's long-term solvency ratio.
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Debt to Assets (including Operating Lease Liability)
Verizon Communications Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Debt maturing within one year | 21,783) | 28,229) | 18,618) | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | ||||||
| Long-term debt, excluding maturing within one year | 143,448) | 144,231) | 139,532) | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | ||||||
| Total debt | 165,231) | 172,460) | 158,150) | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | ||||||
| Current operating lease liabilities | 4,835) | 4,720) | 4,542) | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | ||||||
| Non-current operating lease liabilities | 18,392) | 18,692) | 18,951) | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | ||||||
| Total debt (including operating lease liability) | 188,458) | 195,872) | 181,643) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | ||||||
| Total assets | 410,186) | 417,882) | 404,258) | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.46 | 0.47 | 0.45 | 0.44 | 0.44 | 0.44 | 0.44 | 0.46 | 0.46 | 0.46 | 0.46 | 0.45 | 0.47 | 0.47 | 0.46 | 0.46 | 0.47 | 0.49 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 0.38 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.40 | 0.39 | 0.38 | 0.36 | 0.36 | 0.40 | ||||||
| T-Mobile US Inc. | 0.54 | 0.55 | 0.54 | 0.54 | 0.54 | 0.55 | 0.53 | 0.53 | 0.53 | 0.54 | 0.53 | 0.53 | 0.54 | 0.52 | 0.51 | 0.52 | 0.52 | 0.52 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 188,458 ÷ 410,186 = 0.46
2 Click competitor name to see calculations.
The solvency profile of the entity exhibits a general trend of improvement in leverage from early 2022 through late 2025, followed by a moderate increase in the debt-to-assets ratio during the first half of 2026. The debt-to-assets ratio, which includes operating lease liabilities, decreased from a peak of 0.49 in March 2022 to a stable floor of 0.44 maintained between December 2023 and September 2025.
- Debt-to-Assets Ratio Evolution
- A gradual decline in the ratio is observed throughout 2022 and 2023, signaling a shift toward a more conservative capital structure. The ratio remained remarkably consistent at 0.44 for five consecutive quarters ending in September 2025. However, a reversal occurred in late 2025 and early 2026, with the ratio climbing to 0.47 by March 2026 before settling at 0.46 in June 2026.
- Total Debt Trajectory
- Total debt, inclusive of operating lease liabilities, followed a downward trajectory for the majority of the observed period, falling from 180,161 million USD in March 2022 to a low of 167,714 million USD by December 2024. This period of deleveraging was interrupted in late 2025, where total debt surged to 181,643 million USD in December 2025 and peaked at 195,872 million USD in March 2026, representing a significant short-term increase in liabilities.
- Total Asset Growth
- The total asset base demonstrated a consistent upward trend, growing from 365,716 million USD in March 2022 to 410,186 million USD by June 2026. This growth acted as a counterbalance to the debt levels; specifically, during the peak debt period of March 2026, total assets also reached their highest point of 417,882 million USD, which mitigated the impact of the increased liabilities on the overall solvency ratio.
In summary, the financial data indicates a period of successful deleveraging and asset expansion between 2022 and 2024, leading to enhanced solvency. The subsequent increase in debt during 2025 and 2026 suggests a strategic shift or a requirement for additional funding, although the concurrent growth in the asset base prevented a substantial deterioration of the debt-to-assets ratio.
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Financial Leverage
Verizon Communications Inc., financial leverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 410,186) | 417,882) | 404,258) | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | ||||||
| Equity attributable to Verizon | 103,920) | 103,309) | 104,460) | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 3.95 | 4.04 | 3.87 | 3.70 | 3.72 | 3.78 | 3.88 | 3.96 | 3.94 | 4.03 | 4.11 | 3.94 | 3.99 | 4.07 | 4.17 | 4.29 | 4.30 | 4.37 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 3.88 | 3.84 | 3.80 | 3.82 | 3.85 | 3.83 | 3.78 | 3.85 | 3.78 | 3.82 | 3.94 | 3.92 | 4.01 | 4.03 | 4.13 | 3.48 | 3.62 | 3.41 | ||||||
| T-Mobile US Inc. | 3.80 | 3.84 | 3.70 | 3.59 | 3.48 | 3.51 | 3.37 | 3.28 | 3.33 | 3.32 | 3.21 | 3.22 | 3.20 | 3.14 | 3.03 | 3.04 | 2.99 | 3.01 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Equity attributable to Verizon
= 410,186 ÷ 103,920 = 3.95
2 Click competitor name to see calculations.
The financial structure of the organization exhibits a general trend of deleveraging over the period from March 31, 2022, to June 30, 2026. Although total assets have increased in absolute terms, the proportional growth of equity has resulted in a net reduction of the financial leverage ratio.
- Asset and Equity Trajectory
- Total assets grew from 365,716 million US dollars in March 2022 to 410,186 million US dollars by June 2026. This growth was characterized by a steady increase until late 2025, where a significant surge occurred between September 2025 and March 2026, peaking at 417,882 million US dollars. Simultaneously, equity attributable to the company rose from 83,762 million US dollars to 103,920 million US dollars. A brief contraction in equity was observed in December 2023, falling to 92,430 million US dollars from a previous high of 97,741 million US dollars in September 2023, before resuming an upward trend.
- Financial Leverage Ratio Analysis
- The financial leverage ratio decreased from a peak of 4.37 in March 2022 to 3.95 by June 2026. A consistent downward trend was observed through the first half of 2023, reaching 3.99 by June 30, 2023. The ratio reached its lowest point of 3.70 in September 2025, indicating a period of strengthened solvency and reduced reliance on debt relative to equity.
- Volatility and Periodic Fluctuations
- Despite the overall downward trajectory, two notable spikes in leverage occurred. The first was recorded in December 2023, where the ratio rose to 4.11, coinciding with the aforementioned dip in equity. The second spike occurred in March 2026, reaching 4.04, which correlates with the period of most rapid asset expansion. Following this peak, the ratio corrected back to 3.95 by June 2026.
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Interest Coverage
Verizon Communications Inc., interest coverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to Verizon | 3,835) | 5,045) | 2,342) | 4,950) | 5,003) | 4,879) | 5,005) | 3,306) | 4,593) | 4,602) | (2,705) | 4,762) | 4,648) | 4,909) | 6,577) | 4,900) | 5,199) | 4,580) | ||||||
| Add: Net income attributable to noncontrolling interest | 114) | 101) | 106) | 106) | 118) | 104) | 109) | 105) | 109) | 120) | 132) | 122) | 118) | 109) | 121) | 124) | 116) | 131) | ||||||
| Add: Income tax expense | 1,325) | 1,638) | 615) | 1,471) | 1,488) | 1,490) | 1,454) | 891) | 1,332) | 1,353) | 756) | 1,308) | 1,346) | 1,482) | 2,113) | 1,496) | 1,542) | 1,372) | ||||||
| Add: Interest expense | 1,985) | 1,940) | 1,759) | 1,664) | 1,639) | 1,632) | 1,644) | 1,672) | 1,698) | 1,635) | 1,599) | 1,433) | 1,285) | 1,207) | 1,105) | 937) | 785) | 786) | ||||||
| Earnings before interest and tax (EBIT) | 7,259) | 8,724) | 4,822) | 8,191) | 8,248) | 8,105) | 8,212) | 5,974) | 7,732) | 7,710) | (218) | 7,625) | 7,397) | 7,707) | 9,916) | 7,457) | 7,642) | 6,869) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 3.95 | 4.28 | 4.39 | 4.98 | 4.64 | 4.52 | 4.46 | 3.21 | 3.59 | 3.78 | 4.08 | 6.49 | 7.16 | 8.11 | 8.82 | 8.89 | 9.83 | 9.97 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | 4.64 | 4.80 | 4.97 | 5.20 | 3.83 | 3.66 | 3.47 | 3.10 | 3.62 | 3.82 | 3.96 | 0.04 | 0.36 | 0.37 | 0.49 | 5.27 | 5.20 | 4.53 | ||||||
| T-Mobile US Inc. | 4.44 | 4.54 | 4.78 | 5.30 | 5.53 | 5.47 | 5.31 | 4.95 | 4.68 | 4.42 | 4.30 | 4.11 | 3.36 | 2.44 | 1.94 | 1.43 | 1.50 | 1.92 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (7,259 + 8,724 + 4,822 + 8,191)
÷ (1,985 + 1,940 + 1,759 + 1,664)
= 3.95
2 Click competitor name to see calculations.
The analysis of the solvency metrics reveals a sustained deterioration in the interest coverage ratio from March 31, 2022, through June 30, 2026. The capacity of operating profits to cover interest obligations has diminished significantly, transitioning from a high margin of safety to a more constrained position.
- Interest Coverage Ratio Trends
- A consistent downward trajectory is observed, with the ratio falling from a peak of 9.97 in the first quarter of 2022 to 3.95 by the second quarter of 2026. A period of accelerated decline occurred between September 30, 2023, and June 30, 2024, where the ratio dropped from 6.49 to 3.21. While a modest recovery occurred throughout 2024 and 2025, peaking at 4.98 in June 2025, the ratio ultimately settled back toward the 4.0 range.
- Interest Expense Growth
- The decline in coverage is primarily driven by a steady and significant increase in interest expenses. Expenditures rose from 786 million US dollars in March 2022 to 1,985 million US dollars by June 2026. This represents more than a doubling of the cost of debt service over the analyzed timeframe, creating a persistent drag on the solvency ratio regardless of operating performance.
- Earnings Before Interest and Tax (EBIT) Volatility
- Operating earnings remained relatively stable, generally fluctuating between 7 billion and 8 billion US dollars, with notable exceptions. A significant negative outlier occurred on December 31, 2023, with EBIT dropping to -218 million US dollars, contributing to the sharp contraction in the coverage ratio during that period. Another notable dip was observed on December 31, 2025, where EBIT fell to 4,822 million US dollars before recovering in the subsequent quarter.
- Solvency Synthesis
- The divergence between steadily increasing interest costs and relatively stagnant operating earnings has resulted in a structural weakening of the interest coverage. The stability of EBIT in the 7-8 billion US dollar range was sufficient to maintain high coverage levels in 2022, but it proved insufficient to offset the rise in interest expenses by 2026, leading to a narrowed financial cushion.
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