Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Profitability Ratios
Quarterly Data

Beginner level


Profitability Ratios (Summary)

Verizon Communications Inc., profitability ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Return on Sales
Gross profit margin 58.86% 58.50% 58.60% 58.55% 57.90% 57.58% 57.57% 57.83% 58.48% 59.09% 59.22% 59.26% 59.17% 59.18% 59.52% 59.39% 59.73% 60.07%
Operating profit margin 22.27% 23.04% 18.55% 18.21% 17.25% 17.02% 20.25% 20.03% 21.55% 21.75% 24.63% 24.24% 21.27% 21.48% 22.50% 22.88% 25.07% 25.12%
Net profit margin 14.00% 14.61% 12.26% 12.08% 12.20% 11.87% 24.71% 23.88% 24.37% 23.88% 12.80% 12.88% 9.92% 10.42% 10.96% 11.10% 13.63% 13.58%
Return on Investment
Return on equity (ROE) 30.54% 31.38% 27.34% 27.99% 28.67% 29.22% 59.19% 59.50% 61.43% 69.85% 59.32% 63.23% 52.22% 58.28% 68.54% 75.04% 96.40% 108.83%
Return on assets (ROA) 6.24% 6.60% 5.65% 5.59% 5.64% 5.86% 12.15% 11.76% 11.79% 11.71% 6.25% 6.30% 4.97% 5.38% 5.86% 6.23% 7.35% 7.31%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Verizon Communications Inc.’s gross profit margin ratio deteriorated from Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Verizon Communications Inc.’s operating profit margin ratio improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Verizon Communications Inc.’s net profit margin ratio improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Verizon Communications Inc.’s ROE improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.
ROA A profitability ratio calculated as net income divided by total assets. Verizon Communications Inc.’s ROA improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.

Gross Profit Margin

Verizon Communications Inc., gross profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Gross profit 19,314  19,144  19,510  19,350  19,138  18,990  19,276  18,572  18,517  18,780  19,112  18,438  18,148  17,978  18,708  18,311  19,559  19,547  19,853  19,775  19,888 
Operating revenues 31,610  34,775  32,894  32,071  32,128  34,281  32,607  32,203  31,772  33,955  31,717  30,548  29,814  32,340  30,937  30,532  32,171  34,254  33,158  32,224  31,984 
Profitability Ratio
Gross profit margin1 58.86% 58.50% 58.60% 58.55% 57.90% 57.58% 57.57% 57.83% 58.48% 59.09% 59.22% 59.26% 59.17% 59.18% 59.52% 59.39% 59.73% 60.07%
Benchmarks
Gross Profit Margin, Competitors2
AT&T Inc. 53.85% 53.56% 53.55% 53.54% 53.70% 53.49% 52.30% 51.61% 51.36% 51.80% 52.61% 52.97% 53.04% 53.06% 54.01% 54.17% 54.14% 54.33%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q1 2020 Calculation
Gross profit margin = 100 × (Gross profitQ1 2020 + Gross profitQ4 2019 + Gross profitQ3 2019 + Gross profitQ2 2019) ÷ (Operating revenuesQ1 2020 + Operating revenuesQ4 2019 + Operating revenuesQ3 2019 + Operating revenuesQ2 2019)
= 100 × (19,314 + 19,144 + 19,510 + 19,350) ÷ (31,610 + 34,775 + 32,894 + 32,071) = 58.86%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Verizon Communications Inc.’s gross profit margin ratio deteriorated from Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Operating Profit Margin

Verizon Communications Inc., operating profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Operating income 6,579  6,639  8,180  7,850  7,709  637  7,675  6,617  7,349  4,793  7,208  8,232  7,181  8,023  6,540  4,554  7,942  9,744  7,535  7,821  7,960 
Operating revenues 31,610  34,775  32,894  32,071  32,128  34,281  32,607  32,203  31,772  33,955  31,717  30,548  29,814  32,340  30,937  30,532  32,171  34,254  33,158  32,224  31,984 
Profitability Ratio
Operating profit margin1 22.27% 23.04% 18.55% 18.21% 17.25% 17.02% 20.25% 20.03% 21.55% 21.75% 24.63% 24.24% 21.27% 21.48% 22.50% 22.88% 25.07% 25.12%
Benchmarks
Operating Profit Margin, Competitors2
AT&T Inc. 15.75% 15.43% 15.79% 15.35% 15.28% 15.28% 12.34% 12.27% 12.74% 13.05% 15.46% 15.34% 14.81% 14.87% 16.84% 16.73% 17.03% 16.88%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q1 2020 Calculation
Operating profit margin = 100 × (Operating incomeQ1 2020 + Operating incomeQ4 2019 + Operating incomeQ3 2019 + Operating incomeQ2 2019) ÷ (Operating revenuesQ1 2020 + Operating revenuesQ4 2019 + Operating revenuesQ3 2019 + Operating revenuesQ2 2019)
= 100 × (6,579 + 6,639 + 8,180 + 7,850) ÷ (31,610 + 34,775 + 32,894 + 32,071) = 22.27%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Verizon Communications Inc.’s operating profit margin ratio improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.

Net Profit Margin

Verizon Communications Inc., net profit margin calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 4,156  5,095  5,194  3,944  5,032  1,939  4,924  4,120  4,545  18,669  3,620  4,362  3,450  4,495  3,620  702  4,310  5,391  4,038  4,231  4,219 
Operating revenues 31,610  34,775  32,894  32,071  32,128  34,281  32,607  32,203  31,772  33,955  31,717  30,548  29,814  32,340  30,937  30,532  32,171  34,254  33,158  32,224  31,984 
Profitability Ratio
Net profit margin1 14.00% 14.61% 12.26% 12.08% 12.20% 11.87% 24.71% 23.88% 24.37% 23.88% 12.80% 12.88% 9.92% 10.42% 10.96% 11.10% 13.63% 13.58%
Benchmarks
Net Profit Margin, Competitors2
AT&T Inc. 8.05% 7.67% 8.97% 9.47% 10.59% 11.34% 20.40% 20.12% 19.25% 18.34% 8.00% 8.12% 7.77% 7.92% 8.87% 8.76% 8.97% 9.09%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q1 2020 Calculation
Net profit margin = 100 × (Net income attributable to VerizonQ1 2020 + Net income attributable to VerizonQ4 2019 + Net income attributable to VerizonQ3 2019 + Net income attributable to VerizonQ2 2019) ÷ (Operating revenuesQ1 2020 + Operating revenuesQ4 2019 + Operating revenuesQ3 2019 + Operating revenuesQ2 2019)
= 100 × (4,156 + 5,095 + 5,194 + 3,944) ÷ (31,610 + 34,775 + 32,894 + 32,071) = 14.00%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Verizon Communications Inc.’s net profit margin ratio improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.

Return on Equity (ROE)

Verizon Communications Inc., ROE calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 4,156  5,095  5,194  3,944  5,032  1,939  4,924  4,120  4,545  18,669  3,620  4,362  3,450  4,495  3,620  702  4,310  5,391  4,038  4,231  4,219 
Equity attributable to Verizon 60,210  61,395  58,921  56,582  55,856  53,145  54,495  52,024  50,781  43,096  26,848  25,189  23,493  22,524  20,460  19,244  18,641  16,428  13,138  11,415  9,339 
Profitability Ratio
ROE1 30.54% 31.38% 27.34% 27.99% 28.67% 29.22% 59.19% 59.50% 61.43% 69.85% 59.32% 63.23% 52.22% 58.28% 68.54% 75.04% 96.40% 108.83%
Benchmarks
ROE, Competitors2
AT&T Inc. 8.11% 7.55% 8.94% 9.44% 10.16% 10.52% 18.25% 17.41% 21.00% 20.91% 10.28% 10.54% 10.21% 10.54% 11.77% 11.52% 11.25% 10.88%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q1 2020 Calculation
ROE = 100 × (Net income attributable to VerizonQ1 2020 + Net income attributable to VerizonQ4 2019 + Net income attributable to VerizonQ3 2019 + Net income attributable to VerizonQ2 2019) ÷ Equity attributable to Verizon
= 100 × (4,156 + 5,095 + 5,194 + 3,944) ÷ 60,210 = 30.54%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Verizon Communications Inc.’s ROE improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.

Return on Assets (ROA)

Verizon Communications Inc., ROA calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 4,156  5,095  5,194  3,944  5,032  1,939  4,924  4,120  4,545  18,669  3,620  4,362  3,450  4,495  3,620  702  4,310  5,391  4,038  4,231  4,219 
Total assets 294,500  291,727  284,875  283,108  283,947  264,829  265,562  263,303  264,516  257,143  254,682  252,978  246,731  244,180  239,498  231,870  244,587  244,640  242,073  240,753  235,790 
Profitability Ratio
ROA1 6.24% 6.60% 5.65% 5.59% 5.64% 5.86% 12.15% 11.76% 11.79% 11.71% 6.25% 6.30% 4.97% 5.38% 5.86% 6.23% 7.35% 7.31%
Benchmarks
ROA, Competitors2
AT&T Inc. 2.64% 2.52% 2.98% 3.18% 3.43% 3.64% 6.27% 5.96% 6.87% 6.63% 2.90% 3.12% 3.07% 3.21% 3.61% 3.54% 3.44% 3.31%

Based on: 10-Q (filing date: 2020-04-27), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-08-08), 10-Q (filing date: 2019-04-26), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-31), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-21), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-23), 10-Q (filing date: 2015-10-27), 10-Q (filing date: 2015-07-28), 10-Q (filing date: 2015-04-28).

1 Q1 2020 Calculation
ROA = 100 × (Net income attributable to VerizonQ1 2020 + Net income attributable to VerizonQ4 2019 + Net income attributable to VerizonQ3 2019 + Net income attributable to VerizonQ2 2019) ÷ Total assets
= 100 × (4,156 + 5,095 + 5,194 + 3,944) ÷ 294,500 = 6.24%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Verizon Communications Inc.’s ROA improved from Q3 2019 to Q4 2019 but then slightly deteriorated from Q4 2019 to Q1 2020.