Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
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- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
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Long-term Activity Ratios (Summary)
Verizon Communications Inc., long-term (investment) activity 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).
The investment activity ratios exhibit a general trend of declining efficiency in asset and equity utilization from early 2022 through mid-2026, characterized by a gradual erosion of turnover rates and a notable contraction in fixed asset productivity during the final periods.
- Net Fixed Asset Turnover
- A gradual decline is observed from a peak of 1.35 in March 2022 to 1.24 by December 2023. Following a period of relative stability and marginal recovery between March 2024 and September 2025, where the ratio reached 1.27, a significant drop occurred in early 2026, falling to 1.11 by June 2026. The inclusion of right-of-use assets consistently lowers this ratio, following an identical trajectory and dropping below the 1.00 threshold to 0.93 in the final two quarters of the period.
- Total Asset Turnover
- The efficiency of the total asset base remained relatively stagnant with a slight downward bias. The ratio moved from 0.37 in March 2022 to 0.34 by June 2026. This stability suggests that the company's overall revenue generation capacity relative to its total assets has decreased only marginally, although it has failed to show any meaningful improvement over the timeframe.
- Equity Turnover
- The most consistent downward trend is identified in equity turnover, which decreased from 1.60 in March 2022 to 1.34 by June 2026. This persistent decline indicates a reduction in the efficiency with which shareholder equity is being utilized to generate revenue, suggesting that equity growth has outpaced revenue growth over the observed period.
Net Fixed Asset Turnover
Verizon Communications Inc., net fixed asset turnover 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) | ||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | ||||||||||||||||||||||||
| T-Mobile US Inc. | ||||||||||||||||||||||||
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
Net fixed asset turnover
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the net fixed asset turnover ratio reveals a general long-term decline in the efficiency of fixed asset utilization to generate operating revenue, characterized by a gradual descent, a period of stabilization, and a subsequent sharp contraction.
- Net Fixed Asset Turnover Trend
- The ratio experienced a steady decline from 1.35 in March 2022 to 1.24 by December 2023. This initial downward trajectory indicates that the expansion of net property, plant, and equipment occurred at a faster rate than the growth of operating revenues. From March 2024 through December 2025, the ratio entered a phase of relative stability, fluctuating minimally between 1.24 and 1.27, suggesting a temporary equilibrium between capital investment and revenue output.
- Impact of Significant Capital Expansion
- A pronounced decrease in efficiency is observed in the first half of 2026, with the ratio falling to 1.10 in March 2026 and 1.11 in June 2026. This shift coincides with a substantial increase in net property, plant, and equipment, which rose from approximately 109.5 billion USD in December 2025 to approximately 126 billion USD by March 2026. The inability of operating revenues to grow proportionally with this asset surge resulted in a significant reduction in the turnover ratio.
- Revenue Performance Correlation
- Operating revenues exhibited limited growth over the analyzed period, generally fluctuating between 32.5 billion USD and 36.4 billion USD. The stagnation of top-line revenue, contrasted against a steadily increasing asset base, served as the primary driver for the overall deterioration of the net fixed asset turnover ratio.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Verizon Communications Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||
| Operating lease right-of-use assets | ||||||||||||||||||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | ||||||||||||||||||||||||
| T-Mobile US Inc. | ||||||||||||||||||||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a period of sustained stability in asset utilization followed by a significant expansion of the fixed asset base in early 2026. Operating revenues demonstrate a consistent seasonal pattern, typically peaking in the fourth quarter of each year, while the net fixed asset turnover ratio remained largely stagnant for the majority of the observed period before experiencing a notable decline.
- Asset Utilization Stability (2022–2025)
- From March 2022 through December 2025, the net fixed asset turnover ratio exhibited minimal volatility, fluctuating within a narrow range between 1.01 and 1.05. This stability indicates that the growth in operating revenues was closely aligned with the level of investment in property, plant, and equipment. During this window, net fixed assets remained relatively flat, averaging approximately 132 billion US dollars, which maintained a consistent efficiency ratio in generating revenue from the long-term asset base.
- Capital Investment Surge (2026)
- A significant shift in the investment profile is observed starting in March 2026, where net property, plant, and equipment increased sharply from 132.9 billion US dollars in December 2025 to 149.3 billion US dollars. This represents a substantial increase in the fixed asset base. However, this investment did not result in an immediate or proportional increase in operating revenues, which remained consistent with historical quarterly averages of approximately 34 billion US dollars.
- Impact on Efficiency Ratios
- The expansion of the asset base in 2026 led to a contraction of the net fixed asset turnover ratio, which dropped to 0.93 by March 2026 and remained at that level through June 2026. This decline suggests a decrease in the short-term efficiency of fixed assets, as the company transitioned into a phase of higher capital intensity without an instantaneous corresponding lift in revenue generation.
Total Asset Turnover
Verizon Communications Inc., total asset turnover 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) | ||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | ||||||||||||||||||||||||
| T-Mobile US Inc. | ||||||||||||||||||||||||
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
Total asset turnover
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
An analysis of the investment activity ratios reveals a gradual decline in asset utilization efficiency over the period from March 31, 2022, to June 30, 2026. While operating revenues remained relatively stable with characteristic seasonal fluctuations, total assets exhibited a consistent upward trend, leading to a compression of the total asset turnover ratio.
- Operating Revenue Trends
- Revenues demonstrated a cyclical pattern, typically peaking in the fourth quarter of each year. The values fluctuated within a range of approximately 32.6 billion to 36.4 billion US dollars. Despite these seasonal peaks, there was no significant long-term growth trajectory in revenue generation, with the June 30, 2026, figure of 34.25 billion US dollars remaining comparable to levels observed in early 2022.
- Asset Base Expansion
- A sustained increase in the total asset base is observed, rising from 365.7 billion US dollars in March 2022 to 410.2 billion US dollars by June 2026. The most notable expansion occurred between December 2025 and March 2026, indicating significant capital investment or asset accumulation during this phase.
- Total Asset Turnover Efficiency
- The total asset turnover ratio experienced a slow but steady decrease, starting at 0.37 in March 2022 and ending at 0.34 in June 2026. A period of relative stability was maintained between 0.35 and 0.36 from mid-2022 through 2024. However, a more pronounced downward trend emerged in early 2026, reaching a low of 0.33 in March 2026. This decline indicates that the growth in the asset base has outpaced the growth in operating revenues, resulting in lower productivity per unit of asset.
Equity Turnover
Verizon Communications Inc., equity turnover 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) | ||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||
| Equity attributable to Verizon | ||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| AT&T Inc. | ||||||||||||||||||||||||
| T-Mobile US Inc. | ||||||||||||||||||||||||
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
Equity turnover
= (Operating revenuesQ2 2026
+ Operating revenuesQ1 2026
+ Operating revenuesQ4 2025
+ Operating revenuesQ3 2025)
÷ Equity attributable to Verizon
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The equity turnover ratio exhibits a consistent downward trajectory over the analyzed period, declining from 1.60 in March 2022 to 1.34 by June 2026. This trend indicates a diminishing efficiency in utilizing shareholders' equity to generate operating revenues, as the growth in the equity base has outpaced the growth in revenue.
- Operating Revenue Trends
- Operating revenues remained relatively stable throughout the period, characterized by seasonal fluctuations rather than significant long-term growth. Revenues generally oscillated between a low of 32.59 billion USD in June 2023 and a high of 36.38 billion USD in December 2025. While there is a slight upward drift in the year-end peaks, the overall revenue growth is marginal compared to the expansion of the company's equity.
- Equity Growth Analysis
- Equity attributable to Verizon showed a steady and sustained increase, rising from 83.76 billion USD in March 2022 to 103.92 billion USD in June 2026. This continuous expansion of the equity base serves as the primary mathematical driver for the compression of the equity turnover ratio, as the denominator grew more aggressively than the numerator.
- Equity Turnover Dynamics
- The turnover ratio experienced a nearly continuous decline from the initial 1.60, reaching a low of 1.31 in September 2025. A brief period of relative stabilization occurred between December 2023 and March 2024, where the ratio fluctuated slightly between 1.45 and 1.42. However, the long-term pattern confirms a reduction in asset utilization efficiency relative to equity, moving from a higher turnover in early 2022 to a lower, more stagnant plateau in 2025 and 2026.
In summary, the financial data reveals a divergence between the growth of the company's equity and its ability to scale operating revenues. The resulting decline in equity turnover suggests that additional equity is not translating into proportional increases in sales, leading to a lower rate of return on the equity invested in operations.