Verizon Communications Inc. (NYSE:VZ)

The analysis of the quarterly financial ratios reveals several trends in asset utilization and equity efficiency over the examined periods.

Net Fixed Asset Turnover

This ratio exhibits a gradual decline from 1.37 in the first quarter of 2021 to around 1.24-1.25 in 2024. A slight recovery is observable towards the end of the dataset, reaching 1.27 by the third quarter of 2025. This trend suggests a modest decrease in the efficiency of utilizing net fixed assets to generate revenue over time, with some stabilization and minor improvement in the most recent periods.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The turnover including operating lease assets follows a similar but more pronounced declining trend, starting at 1.11 in early 2021 and decreasing steadily to just above 1.00 through 2023 and 2024. Recovery appears limited but positive toward mid-2025, reaching 1.04. This indicates that when lease assets are considered, the asset utilization efficiency is lower and slightly deteriorates, although there are minor signs of improvement toward the end of the period.

Total Asset Turnover

The total asset turnover remains relatively stable but low across all quarters, fluctuating narrowly around 0.35 to 0.38 without significant upward or downward movement. This indicates a consistent but moderate efficiency in using the overall asset base to generate revenue, with no clear trend of improvement or deterioration.

Equity Turnover

This ratio demonstrates a clear downward trend across the periods, decreasing from 1.82 in early 2021 to approximately 1.31 by the third quarter of 2025. The decline reflects a reduction in the efficiency with which equity capital is used to generate sales. Notably, although some quarters show minor fluctuations, the overall trajectory is negative.

Overall, the financial ratios indicate a gradual decline in asset and equity turnover efficiency over the period, with a more pronounced fall in equity turnover and moderate decreases in net fixed asset utilization. Total asset turnover remains flat, suggesting no significant changes in the broader asset base efficiency. There is some indication of stabilization or minor recovery in net fixed asset turnover ratios in the most recent quarters, which may warrant further monitoring to determine if this trend continues.

The company's operating revenues exhibited fluctuations over the observed periods from March 31, 2021, through September 30, 2025. Initially, revenues increased from approximately 32,867 million USD to a peak of about 35,251 million USD by December 31, 2022. This was followed by a decline in early 2023, reaching around 32,596 million USD in June 2023. Subsequently, the revenues rose again, attaining a new high of roughly 35,681 million USD by December 31, 2024, before experiencing minor fluctuations around 33,821 to 34,504 million USD through the third quarter of 2025.

Regarding the net book value of property, plant, and equipment (PP&E), there was a general upward trend over the entire period. The net PP&E increased from about 94,876 million USD at the end of Q1 2021 to approximately 108,467 million USD by Q3 2025. The growth in net fixed assets was relatively steady, with no major declines observed, indicating ongoing investment or capital expenditures maintaining or expanding the asset base.

The net fixed asset turnover ratio showed a gradual decline over time. Starting at 1.37 in Q1 2021, the ratio decreased to about 1.27 by Q4 2022 and remained relatively stable at around 1.24 to 1.27 through September 2025. This declining trend suggests that revenue generation relative to net fixed assets has slightly weakened, implying either that asset growth is outpacing revenue growth or efficiency in asset utilization has diminished somewhat during this timeframe.

Operating Revenues

Generally fluctuating with growth peaks in late 2022 and late 2024, interspersed with periods of decline.

Property, Plant, and Equipment, Net

Steadily increasing over time, indicating consistent capital investment and asset accumulation.

Net Fixed Asset Turnover

Declining trend, reflecting a modest decrease in asset utilization efficiency over the periods analyzed.

The operating revenues exhibit a fluctuating pattern over the observed periods, with values ranging approximately between 32,500 million USD and 35,600 million USD. There is no consistent upward or downward trend, but some quarters show notable increases, particularly at the end of each year, suggesting possible seasonal effects or year-end business activities that positively impact revenues. For instance, the revenues in December quarters frequently reach higher levels compared to surrounding quarters.

The net book value of property, plant, and equipment (including operating lease right-of-use assets) shows a general increasing trend from the beginning of the timeline up to around December 2021, peaking just above 133,000 million USD. After this peak, the asset base slightly decreases and then stabilizes, maintaining values close to 132,000 million USD for the latter periods. This pattern suggests periods of capital expenditure and asset additions early on, followed by stabilization or reduced investment levels in fixed assets.

The net fixed asset turnover ratio, which measures the efficiency of fixed asset utilization to generate revenue, shows a gradual decline from a high of 1.11 at the beginning to about 1.01 in the middle periods, indicating a slight decrease in efficiency. However, in the most recent periods, the ratio slightly recovers to around 1.04, suggesting a modest improvement in generating revenues from the existing asset base. The initial decline could reflect expanding asset bases without proportionate revenue growth, while the later recovery might indicate higher operational effectiveness or optimization of assets.

Operating Revenues

Show cyclical fluctuations with end-of-year peaks; no clear long-term trend.

Range remains roughly between 32,500 million USD and 35,600 million USD over the periods.

Property, Plant and Equipment, Net

Increasing trend initially, peaking near December 2021, followed by stabilization around 132,000 million USD.

Suggests early capital investments followed by steady asset levels.

Net Fixed Asset Turnover Ratio

Decreases from 1.11 to about 1.01 across early to middle periods, indicating reduced efficiency.

Subsequent slight rebound to around 1.04 in later periods implies modest improvement in asset use efficiency.

Operating Revenues

The operating revenues exhibit a generally fluctuating pattern over the observed quarters. Initial figures around the first quarter of 2021 began at approximately $32.9 billion and displayed modest increases, reaching highs near $35.3 billion towards late 2022. Revenues experienced a dip around early 2023 but recovered substantially by the final quarter of 2024, peaking around $35.7 billion. Across the entire period, fluctuations occur, but the revenue trend indicates periods of both growth and contraction, without a consistent upward or downward trajectory.

Total Assets

Total assets show a consistent upward trend over the years analyzed. Starting from approximately $345.6 billion in early 2021, assets increased steadily, peaking near $384.8 billion towards the end of 2024. Although there are minor fluctuations, the overall trend reveals asset growth of moderate pace, suggesting ongoing investment or accumulation of assets over the time period in question.

Total Asset Turnover

The total asset turnover ratio remains relatively stable throughout the quarters, generally hovering between 0.35 and 0.38. Early quarters reflected values around 0.37 to 0.38, with some slight decline towards 0.35 in later quarters. This stability indicates that the efficiency in utilizing assets to generate revenue has not drastically changed, despite the fluctuations in absolute revenue and asset values.

Summary

Overall, the company’s operating revenues fluctuate within a moderate range, signaling variable performance across quarters. Total assets demonstrate steady growth, reflecting ongoing asset base expansion. The total asset turnover ratio remains fairly constant, implying consistent efficiency in asset utilization over the period. Together, these patterns suggest stable operational efficiency amid varying revenue dynamics and a gradual increase in asset size.

The analysis of the financial data over the observed periods reveals multiple trends in operating revenues, equity attributable to the company, and equity turnover ratios.

Operating Revenues

Operating revenues generally exhibit a fluctuating yet broadly stable pattern with values oscillating in the range of approximately US$32.5 billion to US$35.7 billion. From early 2021 through the end of 2022, revenues show a mild upward trend, reaching peaks especially in the later months of 2022 and early 2023. However, some quarters demonstrate slight declines, as seen in early 2023. Later periods into 2024 and 2025 reflect a notable recovery and increase, with revenues peaking near US$35.7 billion at year-end 2024. The most recent quarters in 2025 maintain strong revenue figures, albeit with some marginal decreases compared to the peaks.

Equity Attributable to Verizon

Equity attributable to the company shows a consistent upward trend throughout the entire timeframe, growing from around US$71.2 billion in early 2021 to over US$105 billion by late 2025. This steady increase reflects accumulated earnings and possibly retained profits or capital injections, indicating an expanding equity base. Some intervals, particularly the transition from late 2023 to early 2024, display slight fluctuations or slower growth, yet the medium to long-term trajectory remains positive.

Equity Turnover Ratio

The equity turnover ratio, which measures how efficiently equity is used to generate revenues, demonstrates a gradual but continuous decline over the observed periods. Starting at 1.82 in the first quarter of 2021, it diminishes steadily to approximately 1.31 by the third quarter of 2025. This downward trend suggests a reduction in the efficiency with which equity is being deployed to generate revenues, potentially due to growth in equity outpacing revenue increases or changing operational dynamics.

In summary, operating revenues remain relatively stable with mild growth and periodic fluctuations, while equity steadily increases, indicating financial strengthening. Conversely, the decreasing equity turnover ratio highlights a trend toward less efficient use of equity to produce revenues over time. These patterns collectively suggest an emphasis on capital growth alongside revenues that do not keep pace proportionally with equity expansion.