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)
Debt Ratios
Coverage Ratios
Verizon Communications Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 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).
The solvency profile exhibits a general trend of deleveraging from the first quarter of 2022 through the third quarter of 2025, followed by a moderate increase in leverage ratios during the first half of 2026. While the company successfully reduced its reliance on debt relative to equity and total assets for several years, there is a significant and sustained decline in the ability to cover interest expenses from operating earnings.
- Debt to Equity and Financial Leverage
- A consistent downward trajectory in the debt-to-equity ratio is observed, decreasing from 1.83 in March 2022 to a low of 1.40 by September 2025. Including operating lease liabilities, this ratio followed a parallel path, dropping from 2.15 to 1.62 over the same period. Financial leverage mirrored this improvement, declining from 4.37 to 3.70 by September 2025. However, a reversal occurred in March 2026, where the debt-to-equity ratio spiked to 1.67 and financial leverage rose to 4.04, before stabilizing slightly toward the end of 2026.
- Capital and Asset Structure
- Debt to capital ratios remained relatively stable with a slight downward bias. The ratio excluding leases moved from 0.65 in March 2022 to 0.58 in September 2025, ending at 0.61 in September 2026. Similarly, the debt-to-assets ratio decreased from 0.42 to 0.37 by December 2024 before returning to 0.40 by the end of the analyzed period. The inclusion of operating lease liabilities consistently added approximately 0.03 to 0.07 to these ratios, indicating a steady level of lease-related obligations relative to the overall capital structure.
- Interest Coverage and Debt Serviceability
- The most significant deterioration is evident in the interest coverage ratio. Starting at a robust 9.97 in March 2022, the ratio experienced a prolonged decline, reaching a nadir of 3.21 in September 2024. Although a temporary recovery to 4.98 was noted in September 2025, the ratio trended downward again to 3.87 by September 2026. This represents a substantial reduction in the margin of safety for meeting interest obligations, suggesting that interest expenses have increased or operating income has diminished relative to the debt load.
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Debt to Equity
Verizon Communications Inc., debt to equity calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 105,986) | 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 | 1.57 | 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. | 1.49 | 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. | 1.53 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to equity = Total debt ÷ Equity attributable to Verizon
= 166,233 ÷ 105,986 = 1.57
2 Click competitor name to see calculations.
Between March 2022 and September 2026, the solvency profile exhibits a general trend of deleveraging, characterized by a reduction in the debt-to-equity ratio from 1.83 to 1.57. This period is marked by a sustained initial decline in the ratio, a period of relative stability, and a subsequent temporary spike in leverage during the first quarter of 2026.
- Total Debt Trajectory
- Debt levels remained relatively stable from March 2022 through December 2024, fluctuating within a range of approximately 144 billion to 153 billion US dollars. A significant increase is observed starting in December 2025, peaking at 172.46 billion US dollars in March 2026, before receding slightly to 166.23 billion US dollars by September 2026.
- Equity Growth
- Equity attributable to the company demonstrated a consistent upward trajectory, growing from 83.76 billion US dollars in March 2022 to 105.99 billion US dollars by September 2026. Aside from a brief contraction in December 2023, the steady expansion of the equity base acted as a primary driver for the improvement in solvency ratios throughout the first half of the analyzed period.
- Debt-to-Equity Ratio Interpretation
- The ratio decreased steadily from 1.83 in early 2022 to a period low of 1.40 by June 2025, indicating a strengthened solvency position. This trend was reversed in early 2026, where the ratio climbed to 1.67 in alignment with the peak in total debt. By September 2026, the ratio moderated to 1.57, suggesting a partial correction of the increased leverage.
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Debt to Equity (including Operating Lease Liability)
Verizon Communications Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 4,772) | 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 | 17,963) | 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) | 188,968) | 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 | 105,986) | 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 | 1.78 | 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. | 1.67 | 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. | 2.04 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Verizon
= 188,968 ÷ 105,986 = 1.78
2 Click competitor name to see calculations.
A comprehensive analysis of the solvency metrics reveals a general trend of improving leverage from early 2022 through late 2025, followed by a period of increased volatility in early 2026. The overall trajectory indicates a strategic reduction in the reliance on debt relative to equity for the majority of the observed period.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited a gradual decline from a peak of 180,161 million USD in March 2022 to a low of 167,714 million USD by March 2025. This downward trend remained relatively stable until December 2025, when a significant increase was observed, peaking at 195,872 million USD in March 2026. Following this peak, a corrective decline occurred, bringing the debt level to 188,968 million USD by September 2026.
- Equity Growth Patterns
- Equity attributable to the company demonstrated a consistent upward trajectory over the analyzed period. Starting at 83,762 million USD in March 2022, equity grew steadily to reach 105,986 million USD by September 2026. Although a temporary contraction occurred in December 2023, the long-term trend remained positive, providing a stronger capital base to support the company's obligations.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio reflects the combined effect of decreasing liabilities and increasing equity. The ratio declined from 2.15 in March 2022 to a period low of 1.62 in September 2025, signaling an improvement in the company's solvency position. However, the ratio spiked to 1.90 in March 2026, corresponding with the surge in total debt. By September 2026, the ratio moderated to 1.78, indicating a return toward the lower leverage levels observed in previous years.
The data suggests that while the organization successfully optimized its solvency profile for over three years, the sudden increase in debt during the first quarter of 2026 temporarily offset these gains. Nevertheless, the sustained growth in equity continues to serve as a buffer against increased leverage.
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Debt to Capital
Verizon Communications Inc., debt to capital calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 105,986) | 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 | 272,219) | 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 | 0.61 | 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. | 0.60 | 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. | 0.60 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 166,233 ÷ 272,219 = 0.61
2 Click competitor name to see calculations.
The solvency profile from March 2022 through September 2026 is characterized by a period of gradual deleveraging followed by a significant increase in total debt during the final year, although the overall capital structure remained relatively stable.
- Total Debt Dynamics
- Total debt exhibited a general downward trend for the first three years, decreasing from 153,382 million USD in March 2022 to a low of 143,649 million USD by March 2025. This period of stability was interrupted in late 2025 and early 2026, with a sharp increase that peaked at 172,460 million USD in March 2026. By the end of the period in September 2026, total debt moderated to 166,233 million USD.
- Total Capital Evolution
- Total capital showed a consistent growth trajectory over the observed period. Starting at 237,144 million USD in March 2022, capital increased steadily to reach a peak of 275,769 million USD in March 2026. The growth in the capital base acted as a counterweight to the increase in debt levels during the final quarters of the analysis.
- Debt to Capital Ratio Analysis
- The debt to capital ratio improved steadily from 0.65 in March 2022 to a minimum of 0.58 in September 2025, signaling a reduction in financial leverage. A temporary spike to 0.63 occurred in March 2026, coinciding with the peak in total debt. However, the ratio subsequently stabilized at 0.61 by September 2026, indicating that while leverage increased in the final year, it remained below the levels recorded at the start of the analysis period.
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Debt to Capital (including Operating Lease Liability)
Verizon Communications Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 4,772) | 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 | 17,963) | 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) | 188,968) | 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 | 105,986) | 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) | 294,954) | 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 | 0.64 | 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. | 0.63 | 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 | 0.67 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 188,968 ÷ 294,954 = 0.64
2 Click competitor name to see calculations.
The analysis of the solvency metrics indicates a period of gradual deleveraging followed by a strategic increase in both total debt and capital base toward the end of the observed period. The debt to capital ratio exhibits a general downward trajectory for the first three years before experiencing a moderate uptick in 2026.
- Debt to Capital Ratio Trend
- The ratio began at 0.68 in March 2022 and entered a consistent period of decline, reaching a low of 0.62 between March and June 2025. This indicates a strengthening of the solvency position as debt represented a smaller portion of the total capital structure. However, a reversal occurred starting in December 2025, with the ratio climbing to a peak of 0.65 in March 2026, before stabilizing at 0.64 by September 2026.
- Total Debt Obligations
- Total debt, including operating lease liabilities, showed a steady decrease from 180,161 million USD in March 2022 to a minimum of 167,714 million USD by December 2024. Following this period of reduction, there was a significant surge in debt obligations starting in December 2025, culminating in a peak of 195,872 million USD in March 2026. The period concluded with debt levels settling at 188,968 million USD in September 2026.
- Total Capital Base Evolution
- The total capital base remained relatively stable, fluctuating between 261,511 million USD and 275,494 million USD from March 2022 through September 2025. A notable expansion in the capital base coincided with the increase in debt during the 2025-2026 period, with total capital reaching its maximum value of 299,181 million USD in March 2026. This suggests that the increase in debt was accompanied by a corresponding increase in the overall capital structure.
Overall, the data reflects a phase of balance sheet optimization that lasted until late 2025, succeeded by a substantial increase in leverage and total capitalization in early 2026. Despite the recent increase in total debt, the debt to capital ratio remains lower than its initial March 2022 level, indicating a net improvement in the long-term solvency profile over the full duration analyzed.
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Debt to Assets
Verizon Communications Inc., debt to assets calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 415,522) | 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 | 0.40 | 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. | 0.36 | 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. | 0.40 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 166,233 ÷ 415,522 = 0.40
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a period of relative stability in the debt-to-assets ratio, characterized by minor fluctuations between 0.37 and 0.42 over the observed period.
- Total Debt Trends
- Total debt remained within a consistent range of approximately US$ 144 billion to US$ 153 billion between March 2022 and December 2024. A significant upward shift occurred starting in late 2025, with debt increasing from US$ 146.7 billion in September 2025 to a peak of US$ 172.4 billion in March 2026, before moderating to US$ 166.2 billion by September 2026.
- Total Asset Growth
- A steady upward trajectory in total assets is observed throughout the reporting timeframe. Assets grew from US$ 365.7 billion in March 2022 to US$ 415.5 billion by September 2026, indicating a continuous expansion of the balance sheet.
- Debt to Assets Ratio Interpretation
- The debt-to-assets ratio exhibited a gradual decline from 0.42 in March 2022 to a period low of 0.37 in December 2024, reflecting a phase where asset growth exceeded debt accumulation. This trend reversed during the 2026 period, where the ratio climbed back to 0.41 in March 2026 due to the sharp increase in total liabilities, eventually stabilizing at 0.40 by September 2026 as asset growth continued to offset the higher debt levels.
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Debt to Assets (including Operating Lease Liability)
Verizon Communications Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Sep 30, 2026 | 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 | 23,889) | 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 | 142,344) | 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 | 166,233) | 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 | 4,772) | 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 | 17,963) | 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) | 188,968) | 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 | 415,522) | 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 | 0.45 | 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. | 0.40 | 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 | 0.54 | 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: 2026-09-30), 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 Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 188,968 ÷ 415,522 = 0.45
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability with a general trend of leverage reduction, followed by a moderate increase in debt obligations toward the end of the observed period. The relationship between total liabilities and total assets remains balanced, with the leverage ratio consistently staying below 0.50.
- Debt to Assets Ratio Trends
- The ratio began at 0.49 in March 2022 and underwent a gradual decline to a low of 0.44, which was maintained from December 2024 through June 2025. A temporary increase to 0.47 is noted in March 2026, before the ratio moderated to 0.45 by September 2026. This suggests a disciplined approach to maintaining a consistent solvency threshold.
- Total Asset Expansion
- A steady upward trajectory in total assets is observed, increasing from 365,716 million USD in March 2022 to a peak of 417,882 million USD in March 2026. This expansion of the asset base has served as a critical counterbalance to debt levels, preventing significant spikes in the solvency ratio despite increases in borrowing.
- Debt Liability Fluctuations
- Total debt, including operating lease liabilities, remained relatively range-bound between 172,000 and 180,000 million USD from March 2022 through June 2024, reaching a period low of 167,714 million USD in December 2024. A significant increase in debt is evident starting in late 2025, peaking at 195,872 million USD in March 2026. This sharp rise in liabilities drove the temporary increase in the debt-to-assets ratio during the first quarter of 2026.
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Financial Leverage
Verizon Communications Inc., financial leverage calculation (quarterly data)
| Sep 30, 2026 | 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 | 415,522) | 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 | 105,986) | 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 | 3.92 | 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. | 4.18 | 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. | 3.78 | 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: 2026-09-30), 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 Q3 2026 Calculation
Financial leverage = Total assets ÷ Equity attributable to Verizon
= 415,522 ÷ 105,986 = 3.92
2 Click competitor name to see calculations.
The financial leverage profile exhibits a general downward trajectory over the analyzed period, indicating a strategic shift toward a more conservative capital structure. While total assets have expanded, the growth in equity attributable to the company has outpaced asset growth in several phases, leading to a reduction in the overall reliance on debt-funded financing.
- Asset and Equity Growth
- Total assets increased from 365,716 million US dollars in March 2022 to 415,522 million US dollars by September 2026. Concurrently, equity attributable to the company grew from 83,762 million US dollars to 105,986 million US dollars over the same timeframe. This simultaneous growth reflects an expansion of the balance sheet supported by a strengthening equity base.
- Financial Leverage Trends
- The financial leverage ratio declined from a peak of 4.37 in March 2022 to a low of 3.70 by September 2025. This downward trend suggests a consistent reduction in the proportion of assets financed through liabilities. A temporary reversal occurred in December 2023, where the ratio rose to 4.11, followed by a subsequent decline toward the 3.70 level.
- Recent Solvency Dynamics
- In the final periods of the analysis, the leverage ratio showed increased volatility, peaking at 4.04 in March 2026 before moderating to 3.92 by September 2026. Despite these fluctuations, the terminal leverage ratio remains significantly lower than the initial levels observed in early 2022, reflecting an improved long-term solvency position.
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Interest Coverage
Verizon Communications Inc., interest coverage calculation (quarterly data)
| Sep 30, 2026 | 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 | 5,198) | 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 | 122) | 114) | 101) | 106) | 106) | 118) | 104) | 109) | 105) | 109) | 120) | 132) | 122) | 118) | 109) | 121) | 124) | 116) | 131) | ||||||
| Add: Income tax expense | 1,497) | 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 | 1,950) | 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) | 8,767) | 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 | 3.87 | 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. | 3.44 | 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. | 4.59 | 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: 2026-09-30), 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 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (8,767 + 7,259 + 8,724 + 4,822)
÷ (1,950 + 1,985 + 1,940 + 1,759)
= 3.87
2 Click competitor name to see calculations.
A significant deterioration in the interest coverage ratio is observed over the analyzed period, shifting from a robust position of 9.97 in March 2022 to 3.87 by September 2026. This downward trajectory indicates a reduced margin of safety for meeting interest obligations through operating profits.
- Interest Coverage Ratio Trend
- The ratio experienced a consistent decline throughout 2022 and 2023, falling from 9.97 to 4.08. A further contraction occurred in the first half of 2024, reaching a period low of 3.21 in September 2024. While a moderate recovery was noted between December 2024 and September 2025, where the ratio peaked at 4.98, it subsequently trended downward again toward the end of the period.
- Interest Expense Growth
- A steady and substantial increase in interest expenses is evident. Costs rose from 786 million US dollars in March 2022 to 1,950 million US dollars by September 2026. This consistent upward trend suggests either an increase in total debt load or a significant rise in the cost of borrowing over the five-year span.
- EBIT Performance and Volatility
- Earnings before interest and tax remained relatively stable, generally fluctuating between 7 billion and 8 billion US dollars. However, extreme volatility was recorded in December 2023, with EBIT dropping to negative 218 million US dollars, which contributed to the compression of the coverage ratio. Another notable decline occurred in December 2025, with earnings falling to 4,822 million US dollars, further straining the company's ability to service its debt during that quarter.
The confluence of rising interest expenses and fluctuating operating earnings has resulted in a structural decline in solvency efficiency. The capacity to cover interest payments has diminished by more than 60% from the start of the period to its conclusion.
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