Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Verizon Communications Inc., profitability ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Gross Profit Margin
- The gross profit margin exhibited a declining trend from the first quarter of 2021 through the end of 2022, decreasing from 59.53% to a low of 56.79%. Starting in early 2023, the margin began to recover gradually, reaching approximately 59.41% by the third quarter of 2025. This pattern indicates an initial erosion in cost efficiency or pricing power, followed by a sustained period of improvement.
- Operating Profit Margin
- The operating profit margin maintained relative stability with minor fluctuations around the low to mid-20% range during 2021 and 2022, peaking at 24.29% in the fourth quarter of 2021 and declining to a trough of 16.29% in the third quarter of 2024. Notably, there was a significant recovery in the final quarters, with the margin rising back above 23% by the third quarter of 2025. This suggests operational challenges mid-period, partially offset by efficiency gains or revenue improvements in the later stages.
- Net Profit Margin
- The net profit margin showed moderate growth during 2021, reaching a high of 16.51% in the fourth quarter of that year, before undergoing volatility and a sharp decrease to approximately 7.3% by the third quarter of 2024. This was followed by a recovery trend, with margins climbing back to over 14% by the third quarter of 2025. The temporary decline may reflect increased costs, impairments, or tax factors, which were subsequently mitigated.
- Return on Equity (ROE)
- The ROE followed a similar trajectory as net profit margin, peaking around 28.61% in the third quarter of 2021 and then decreasing substantially to near 10.17% by the third quarter of 2024. After this point, ROE demonstrated a rebound, rising to 18.88% by the third quarter of 2025. The mid-term reductions indicate diminished shareholder returns, possibly due to rising expenses or lower profitability, with partial recovery indicating improved financial performance or better capital management.
- Return on Assets (ROA)
- ROA increased steadily up to 6.24% in the third quarter of 2021 before declining to a low of around 2.57% by the third quarter of 2024. Subsequently, ROA improved to 5.11% by the third quarter of 2025. The decline and recovery pattern may be attributed to fluctuations in asset utilization efficiency or net income volatility over the period, with the latter period indicating enhanced asset productivity.
Return on Sales
Return on Investment
Gross Profit Margin
Verizon Communications Inc., gross profit margin calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 20,475) | 20,619) | 20,429) | 20,167) | 20,090) | 20,325) | 20,109) | 19,948) | 19,899) | 19,832) | 19,408) | 19,489) | 19,640) | 19,369) | 19,204) | 19,071) | 19,387) | 19,509) | 19,345) | ||||||
| Operating revenues | 33,821) | 34,504) | 33,485) | 35,681) | 33,330) | 32,796) | 32,981) | 35,130) | 33,336) | 32,596) | 32,912) | 35,251) | 34,241) | 33,789) | 33,554) | 34,067) | 32,915) | 33,764) | 32,867) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 59.41% | 59.35% | 59.88% | 59.87% | 59.95% | 59.80% | 59.52% | 59.03% | 58.64% | 58.05% | 57.20% | 56.79% | 56.97% | 57.35% | 57.46% | 57.86% | 58.19% | 58.66% | 59.53% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 59.67% | 59.67% | 59.90% | 59.77% | 59.91% | 59.61% | 59.33% | 59.06% | 59.11% | 58.89% | 58.37% | 57.89% | 56.22% | 55.29% | 53.79% | 52.74% | 52.23% | 51.75% | 52.68% | ||||||
| T-Mobile US Inc. | 63.55% | 63.61% | 63.76% | 63.57% | 63.42% | 62.86% | 62.27% | 61.57% | 61.13% | 59.25% | 56.78% | 54.50% | 52.57% | 52.67% | 53.09% | 54.31% | 55.06% | 56.12% | 57.65% | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Gross profit margin = 100
× (Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025
+ Gross profitQ4 2024)
÷ (Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024)
= 100 × (20,475 + 20,619 + 20,429 + 20,167)
÷ (33,821 + 34,504 + 33,485 + 35,681)
= 59.41%
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company's quarterly performance over the analyzed periods.
- Operating Revenues
- Operating revenues exhibit a fluctuating pattern with periods of both growth and decline. Initially, revenues increased from approximately $32.9 billion in the first quarter of 2021 to over $35.2 billion by the fourth quarter of 2022, indicating a general upward momentum. However, subsequent quarters show some volatility, with revenues dipping below $33 billion in the first half of 2023 before rebounding again towards the end of 2024 and into 2025. This suggests a cyclical element in revenue generation, possibly reflecting seasonal demand or market conditions.
- Gross Profit
- Gross profit has remained relatively stable around the $19.3 billion to $20.4 billion range. There is a slight upward trend noticeable from 2023 onward, with gross profit increasing gradually, peaking at approximately $20.6 billion in late 2024, followed by minor fluctuations. This stability in gross profit, despite some revenue volatility, may indicate effective cost management or changes in the sales mix that support profitability.
- Gross Profit Margin
- The gross profit margin shows a downward trend from early 2021 through 2022, declining from about 59.5% to approximately 56.8%, implying a decrease in profitability relative to revenues during that period. However, from 2023 onwards, there is a noticeable recovery and gradual improvement in the margin, reaching almost 60% by late 2024. This recovery suggests enhanced operational efficiency or more favorable pricing strategies that helped restore profitability levels.
Overall, the company displays resilience in maintaining gross profit despite fluctuations in operating revenues. The improvement in gross profit margin in recent quarters signals potential positive changes in cost control or business strategy. The cyclical nature of revenues indicates that external factors might influence sales, requiring continued strategic vigilance.
Operating Profit Margin
Verizon Communications Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating income | 8,105) | 8,172) | 7,978) | 7,421) | 5,926) | 7,818) | 7,521) | 600) | 7,473) | 7,220) | 7,584) | 7,225) | 7,894) | 7,552) | 7,796) | 7,608) | 8,905) | 8,165) | 7,770) | ||||||
| Operating revenues | 33,821) | 34,504) | 33,485) | 35,681) | 33,330) | 32,796) | 32,981) | 35,130) | 33,336) | 32,596) | 32,912) | 35,251) | 34,241) | 33,789) | 33,554) | 34,067) | 32,915) | 33,764) | 32,867) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 23.04% | 21.53% | 21.54% | 21.28% | 16.29% | 17.44% | 17.02% | 17.08% | 22.00% | 22.17% | 22.21% | 22.27% | 22.74% | 23.72% | 24.18% | 24.29% | 23.85% | 23.18% | 23.15% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 19.04% | 15.89% | 15.42% | 15.57% | 15.56% | 18.54% | 19.05% | 19.16% | -2.38% | -2.20% | -3.40% | -3.80% | 16.73% | 16.34% | 13.72% | 13.83% | 4.20% | 3.59% | 3.81% | ||||||
| T-Mobile US Inc. | 22.28% | 23.08% | 22.75% | 22.13% | 21.13% | 19.85% | 18.93% | 18.16% | 17.27% | 14.28% | 10.29% | 8.22% | 6.07% | 6.43% | 8.15% | 8.60% | 9.46% | 10.74% | 9.39% | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2025
+ Operating incomeQ2 2025
+ Operating incomeQ1 2025
+ Operating incomeQ4 2024)
÷ (Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024)
= 100 × (8,105 + 8,172 + 7,978 + 7,421)
÷ (33,821 + 34,504 + 33,485 + 35,681)
= 23.04%
2 Click competitor name to see calculations.
- Operating Income
- The operating income exhibited moderate fluctuations over the observed periods. Initially, it increased from approximately 7,770 million to a peak near 8,900 million by the third quarter of 2021. Subsequently, a decline occurred toward the year-end of 2021. Throughout 2022 and early 2023, operating income showed variability but remained relatively stable within a range of about 7,200 to 7,900 million. Notably, an outlier with a significantly lower value near 600 million appeared at the end of 2023, suggesting a possible irregular event or adjustment. Following this, operating income rebounded and remained mostly stable, reaching levels around 8,000 million toward the end of the timeline in 2025.
- Operating Revenues
- Operating revenues demonstrated relative stability and mild fluctuations across the periods. Starting near 32,867 million at the beginning of 2021, revenues experienced small oscillations fluctuating from about 32,500 to 35,600 million over the years. The highest revenue point was observed around the fourth quarter of 2024, nearing 35,681 million. While some quarters showed modest dips, the overall trend remained fairly consistent with no pronounced upward or downward trajectory. This indicates a steady revenue base.
- Operating Profit Margin
- The operating profit margin followed a declining trend over the majority of the timeline. Beginning at just above 23% in early 2021, the margin maintained a level above 22% until late 2022. Subsequently, it decreased steadily, reaching a trough near 16% at the end of 2024, reflecting diminished profitability relative to revenues during that period. However, by 2025, the operating profit margin recovered somewhat, rising again to above 21%, indicating an improvement in operational efficiency or expense management in the latter stages.
- Summary of Trends
- Overall, operating income and revenues displayed relative stability with periodic fluctuations, while operating profit margins indicated a more pronounced downward trend followed by partial recovery. The significant dip in operating income recorded near the end of 2023 stands out as an anomaly and would warrant further investigation. The rebound in margins and income toward 2025 suggests efforts to restore profitability. The data suggests a period of operational challenges potentially impacting profit margins, despite consistent revenue generation.
Net Profit Margin
Verizon Communications Inc., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,613) | 6,407) | 5,800) | 5,245) | ||||||
| Operating revenues | 33,821) | 34,504) | 33,485) | 35,681) | 33,330) | 32,796) | 32,981) | 35,130) | 33,336) | 32,596) | 32,912) | 35,251) | 34,241) | 33,789) | 33,554) | 34,067) | 32,915) | 33,764) | 32,867) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 14.43% | 13.28% | 13.14% | 12.99% | 7.30% | 8.38% | 8.44% | 8.67% | 15.58% | 15.58% | 15.85% | 15.53% | 14.22% | 15.48% | 15.93% | 16.51% | 16.42% | 15.05% | 14.58% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 17.87% | 10.29% | 9.64% | 8.95% | 7.42% | 10.41% | 11.13% | 11.76% | -9.29% | -7.22% | -7.52% | -7.06% | 15.37% | 14.21% | 11.21% | 11.89% | 0.67% | -1.11% | -1.29% | ||||||
| T-Mobile US Inc. | 13.83% | 14.53% | 14.41% | 13.93% | 12.96% | 11.95% | 11.14% | 10.59% | 9.93% | 7.82% | 4.83% | 3.25% | 1.92% | 2.14% | 3.48% | 3.77% | 4.21% | 4.93% | 3.95% | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Net profit margin = 100
× (Net income attributable to VerizonQ3 2025
+ Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024)
÷ (Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024)
= 100 × (4,950 + 5,003 + 4,879 + 5,005)
÷ (33,821 + 34,504 + 33,485 + 35,681)
= 14.43%
2 Click competitor name to see calculations.
- Net Income Attributable to Verizon
- The net income figures demonstrate notable fluctuations over the periods analyzed. Beginning at $5,245 million in Q1 2021, net income increased steadily, reaching a peak of $6,577 million in Q4 2021. This was followed by a decline in early 2023, notably falling to a negative value of -$2,705 million in Q4 2023, indicative of a loss during that quarter. Subsequently, net income recovered, increasing to approximately $5,005 million by Q1 2025. The overall trend suggests volatility with a significant dip in late 2023, then a rebound into positive territory in 2024 and 2025.
- Operating Revenues
- Operating revenues showed relative stability with gradual upward movement throughout most of the periods. Starting at $32,867 million in Q1 2021, revenues demonstrated a general increase, peaking around $35,681 million by Q4 2024. Despite some minor quarter-to-quarter fluctuations, the operating revenue remained broadly consistent and displayed resilience even in quarters where net income experienced volatility. This trend indicates stable top-line performance with moderate growth over the examined timeframe.
- Net Profit Margin
- The net profit margin exhibited an overall downward trend after an initial period of stability and slight growth. Margins started at 14.58% in Q1 2021, increasing modestly to a high of 16.51% by Q4 2021. However, beginning in 2023, the margin showed a marked decline, reaching a low point of approximately 7.3% in Q3 2024. This decline coincides with the observed dip in net income around the same periods. Toward the latter part of the dataset, the margin gradually improved again, reaching around 14.43% by Q1 2025. This indicates periods of margin compression followed by recovery, reflecting possible changes in cost structures or operational efficiency impacting profitability.
- Overall Analysis
- The data indicates a company with steady revenue generation but experiencing volatility in profitability. Net income and profit margins both faced significant mid-term declines, particularly in late 2023 and early 2024, including a reported net loss in one quarterly period. Despite these challenges, the company managed to restore profitability and margin ratios in subsequent quarters. The stable rise in operating revenues supports the likelihood that external or internal cost pressures, rather than revenue declines, contributed to profitability fluctuations. The recovery in profit margins and net income towards early 2025 suggests effective management responses to previous adverse conditions.
Return on Equity (ROE)
Verizon Communications Inc., ROE calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,613) | 6,407) | 5,800) | 5,245) | ||||||
| Equity attributable to Verizon | 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) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 18.88% | 17.65% | 17.66% | 17.64% | 10.17% | 11.70% | 11.99% | 12.57% | 21.38% | 22.10% | 23.24% | 23.32% | 22.06% | 24.18% | 25.55% | 26.98% | 28.61% | 27.13% | 26.52% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 20.09% | 12.12% | 11.43% | 10.49% | 8.85% | 12.08% | 13.03% | 13.94% | -10.90% | -8.61% | -9.16% | -8.74% | 16.37% | 16.92% | 10.26% | 12.07% | 0.71% | -1.20% | -1.35% | ||||||
| T-Mobile US Inc. | 19.63% | 19.99% | 19.50% | 18.37% | 16.14% | 15.10% | 14.10% | 12.85% | 12.03% | 9.35% | 5.70% | 3.72% | 2.19% | 2.45% | 4.01% | 4.38% | 4.90% | 5.80% | 4.59% | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
ROE = 100
× (Net income attributable to VerizonQ3 2025
+ Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024)
÷ Equity attributable to Verizon
= 100 × (4,950 + 5,003 + 4,879 + 5,005)
÷ 105,042 = 18.88%
2 Click competitor name to see calculations.
The quarterly financial performance exhibits variability in net income attributable to Verizon Communications Inc. over the observed periods. The net income figures show an overall fluctuating trend, with notable peaks and troughs. Early in the timeline, net income steadily increased from $5,245 million to $6,407 million between March 2021 and September 2021, followed by a decline in December 2021 to $4,613 million. Subsequently, the net income oscillated with some recovery and declines, including a significant drop to negative $2,705 million in December 2023. After this period, net income recovered again in the subsequent quarters, reaching $4,879 million by June 2025.
Equity attributable to Verizon demonstrates a consistent upward trend throughout the period. Starting at $71,232 million in March 2021, equity grew gradually each quarter, reaching $105,042 million by September 2025. This steady increase indicates ongoing capital accumulation or retained earnings growth despite fluctuations in net income.
Return on Equity (ROE) shows notable changes reflecting the performance volatility. Initially, ROE was relatively high, peaking at 28.61% in September 2021, before gradually declining to around 22% by the end of 2022. The drop in net income during December 2023 is clearly reflected in ROE, which fell sharply to approximately 12.57%, indicating reduced profitability relative to equity during that quarter. Following this decrease, ROE remained subdued in the early 2024 quarters but displayed signs of recovery, rising to nearly 18.88% by September 2025. This rebound suggests an improvement in generating returns on the equity base after periods of weaker earnings.
In summary, the financial trends reveal a company experiencing earnings volatility with significant quarterly fluctuations, including periods of negative net income, while maintaining a steady growth in equity. The ROE metric aligns with profit patterns, showing high profitability in earlier periods, a mid-term decline, and partial recovery in later quarters. This pattern reflects both operational challenges and resilience in capital strength over time.
Return on Assets (ROA)
Verizon Communications Inc., ROA calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,613) | 6,407) | 5,800) | 5,245) | ||||||
| Total assets | 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) | 366,596) | 353,457) | 349,190) | 345,573) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 5.11% | 4.75% | 4.68% | 4.55% | 2.57% | 2.97% | 2.97% | 3.05% | 5.43% | 5.54% | 5.71% | 5.60% | 5.14% | 5.62% | 5.85% | 6.02% | 6.24% | 5.72% | 5.47% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 5.26% | 3.15% | 2.98% | 2.77% | 2.30% | 3.20% | 3.41% | 3.54% | -2.78% | -2.15% | -2.27% | -2.12% | 4.70% | 4.67% | 3.00% | 3.64% | 0.21% | -0.36% | -0.41% | ||||||
| T-Mobile US Inc. | 5.47% | 5.74% | 5.55% | 5.45% | 4.92% | 4.53% | 4.24% | 4.00% | 3.73% | 2.92% | 1.82% | 1.23% | 0.72% | 0.82% | 1.33% | 1.46% | 1.66% | 1.92% | 1.50% | ||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
ROA = 100
× (Net income attributable to VerizonQ3 2025
+ Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024)
÷ Total assets
= 100 × (4,950 + 5,003 + 4,879 + 5,005)
÷ 388,331 = 5.11%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's profitability, asset base, and return on assets (ROA) over the observed periods.
- Net Income
- The net income attributable to the company shows fluctuations across quarters with a general pattern of growth followed by some declines and recoveries. From March 2021 to December 2021, net income grew from approximately 5,245 million USD to a peak of 6,577 million USD, indicating strong profitability. However, there is a significant negative net income observed in December 2023, where the figure dropped to -2,705 million USD, representing an unusual loss for that quarter. Following this anomaly, net income recovered in subsequent quarters, stabilizing around values ranging from 3,306 million USD to 5,005 million USD. This pattern suggests episodic volatility, possibly due to extraordinary items or non-recurring events affecting earnings in late 2023.
- Total Assets
- Total assets steadily increased over the entire period under review, rising from 345,573 million USD in March 2021 to 388,331 million USD in September 2025. This consistent asset growth reflects ongoing investments or acquisitions and an expanding asset base. Minor quarter-to-quarter fluctuations are present but do not detract from the overall upward trajectory. The increase in assets appears gradual and stable, supporting potential future revenue generation capacities.
- Return on Assets (ROA)
- ROA, indicating the efficiency of asset utilization in generating profits, demonstrates variability closely tied to the trends in net income and asset levels. Initially, ROA improved from 5.47% in March 2021 to a peak of 6.24% in September 2021, but then gradually declined to lows around 2.57%-3.05% during late 2023 and early 2024. This dip corresponds with the significant negative net income recorded in December 2023, adversely impacting asset profitability. From mid-2024 onwards, ROA showed a recovery trend, improving steadily to surpass 5% by September 2025, suggesting a return to more efficient asset utilization following the weaker performance period.
In summary, the company experienced overall growth in its asset base and intermittent volatility in profitability, notably around the end of 2023. Despite this volatility, the return on assets rebounded in the latter periods, indicating a restoration of operational efficiency. These findings imply that while the company has maintained substantial asset growth, it faced significant challenges impacting earnings temporarily but showed resilience and recovery in the subsequent quarters.