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: 2025-06-30), 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Gross Profit Margin
- The gross profit margin demonstrated a generally declining trend from 60.09% in March 2020 to 56.79% by December 2022. However, beginning in 2023, a gradual recovery is observed, with the margin increasing steadily to peak at 59.95% in September 2024 before slightly tapering to 59.35% by June 2025. This suggests some improvement in cost management or pricing power in the latter periods after a phase of contraction.
- Operating Profit Margin
- Operating profit margin showed an increasing pattern from 22.45% in March 2020 to a high of 24.29% in March 2022, indicating improving operational efficiency or higher operating income. This was followed by a decline through the end of 2023, reaching a low of 16.29% in March 2025. However, a recovery begins thereafter, with the margin increasing to around 21.5% by June 2025. This fluctuation points to variable operating performance, possibly influenced by changes in operating expenses or revenue volatility.
- Net Profit Margin
- The net profit margin presented an upward trend from 13.88% in March 2020 to 16.51% in March 2022, suggesting improving overall profitability. Subsequently, the margin declined notably to 7.3% by December 2024, indicating pressure on net earnings, possibly due to increased interest, taxes, or non-operating losses. A recovery phase is evident in the first half of 2025, with the margin rising back to approximately 13.28% by June 2025.
- Return on Equity (ROE)
- Return on equity started at 26.24% in March 2020 and peaked at 28.61% in December 2020. Thereafter, a continuous decline occurred until reaching a low of 10.17% in December 2024, signifying diminishing effectiveness in generating returns from shareholders' equity. A recovery trend is seen in 2025, with ROE climbing back to about 17.65% by June 2025. The decline and partial recovery could reflect changes in net income, equity levels, or leverage.
- Return on Assets (ROA)
- Return on assets followed a similar pattern, increasing modestly from 5.62% in March 2020 to 6.24% in December 2020, then gradually decreasing to a trough of 2.57% in December 2024. This indicates decreasing efficiency in utilizing assets to generate profits during that period. The ROA improved again in the first half of 2025, rising to 4.75% by June 2025. This fluctuation suggests challenges in asset utilization that were somewhat alleviated in recent quarters.
Return on Sales
Return on Investment
Gross Profit Margin
Verizon Communications Inc., gross profit margin calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | 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) | 19,870) | 19,209) | 18,698) | 19,314) | |||||||
| Operating revenues | 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) | 34,692) | 31,543) | 30,447) | 31,610) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 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% | 60.09% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 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% | 53.47% | — | — | — | |||||||
| T-Mobile US Inc. | 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% | 58.67% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Gross profit margin = 100
× (Gross profitQ2 2025
+ Gross profitQ1 2025
+ Gross profitQ4 2024
+ Gross profitQ3 2024)
÷ (Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024
+ Operating revenuesQ3 2024)
= 100 × (20,619 + 20,429 + 20,167 + 20,090)
÷ (34,504 + 33,485 + 35,681 + 33,330)
= 59.35%
2 Click competitor name to see calculations.
The financial data reveals notable trends over the examined periods in several key areas including gross profit, operating revenues, and gross profit margin.
- Gross Profit
- Gross profit fluctuated moderately across the observed quarters, beginning at $19,314 million in March 2020, with a slight decline and periodic recovery seen through the years. Notably, gross profit showed a general increasing trend starting from the end of 2022, reaching $20,619 million by June 2025. This indicates a gradual improvement in the core profitability of the operations.
- Operating Revenues
- Operating revenues exhibited more pronounced variation compared to gross profit. Starting at $31,610 million in March 2020, revenues experienced declines and rebounds with several peaks and dips along the timeline. The highest values were observed toward the end of 2024 and into mid-2025, with revenues reaching $34,504 million. This pattern suggests cyclical seasonal effects or external influences impacting top-line performance, with an overall tendency towards revenue growth in the recent quarters.
- Gross Profit Margin
- The gross profit margin, available from December 2020 onwards, displayed a steady upward trajectory. Beginning at around 56.79% in December 2020, the margin consistently improved quarter over quarter, reaching approximately 59.35% by June 2025. This increase in margin percentage suggests enhancements in cost management or product mix, resulting in more efficient conversion of operating revenues into gross profit.
In summary, the data reflects steady operational improvements characterized by rising gross profit margins and increasing gross profit levels, despite periodic fluctuations in operating revenues. The upward trend in profit margins indicates strengthened profitability and potentially improved cost control or pricing strategies over the analyzed periods.
Operating Profit Margin
Verizon Communications Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income | 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) | 7,180) | 7,678) | 7,361) | 6,579) | |||||||
| Operating revenues | 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) | 34,692) | 31,543) | 30,447) | 31,610) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 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% | 22.45% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 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% | 3.73% | — | — | — | |||||||
| T-Mobile US Inc. | 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% | 9.70% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2025
+ Operating incomeQ1 2025
+ Operating incomeQ4 2024
+ Operating incomeQ3 2024)
÷ (Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024
+ Operating revenuesQ3 2024)
= 100 × (8,172 + 7,978 + 7,421 + 5,926)
÷ (34,504 + 33,485 + 35,681 + 33,330)
= 21.53%
2 Click competitor name to see calculations.
- Operating Income Trends
- Operating income shows a fluctuating pattern over the observed periods. From the first quarter of 2020 through the end of 2021, operating income generally increased, peaking in the third quarter of 2021 at 8,905 million US dollars before declining sharply in the last quarter of 2021 to 7,608 million. The year 2022 demonstrates some volatility with values ranging mostly between 7,200 and 7,900 million US dollars but without a clear upward or downward trend. In 2023, operating income appears to stabilize around the 7,200 to 7,500 million range, with an isolated sharp drop to 600 million in the last quarter of the year, suggesting a significant anomaly or extraordinary event occurred. Following this, quarterly operating income rebounds to values between approximately 7,400 and 8,200 million US dollars through mid-2025.
- Operating Revenues Trends
- Operating revenues exhibit moderate fluctuations but overall maintain a relatively stable range between approximately 30,000 to 35,600 million US dollars across the examined quarters. Initial quarters of 2020 see revenues around 31,000 million, dipping briefly below 31,000 million in mid-2020, before rising toward 35,000 million by the end of 2020. From 2021 through mid-2022, revenues remain fairly flat, oscillating near 33,000 to 35,000 million. In 2023 and early 2024, operating revenues demonstrate a small downward inflection but recover towards the end of the period, culminating in approximately 34,500 million US dollars by mid-2025. No sustained significant increasing or decreasing trend is evident, but seasonal or cyclical fluctuations might explain some quarter-to-quarter variability.
- Operating Profit Margin Analysis
- Data on operating profit margin, reported from the first quarter of 2021 onward, reflects a clear initial improvement trend. Margins rise from 22.45% in the first quarter of 2021 to a peak approaching 24.29% by the first quarter of 2022, indicating increased profitability relative to revenues during this timeframe. After this peak, margins begin a gradual decline, dropping into the range of approximately 22.0% by late 2022 and continuing downward into 2023 and beyond, with margins falling to about 16.3% by the fourth quarter of 2023. Notably, margins improve again in subsequent periods, reaching above 21% by the first half of 2025. This pattern suggests volatility in cost efficiency or operational leverage that impacts profitability independently of revenue levels.
- Summary Insights
- The data portrays a company experiencing fluctuating operating income with occasional sharp decreases, steady but unremarkable revenue levels, and a profit margin trend showing periods of improvement followed by significant declines, then recovery. The sharp income dip in late 2023 stands out as an abnormality requiring further investigation. Despite stable revenues, margin compression in certain periods could indicate rising costs or operational challenges. The recovery in margins toward 2025 may reflect successful cost management or pricing strategies. Overall, the financial metrics stress the importance of monitoring profitability drivers closely, given the observed volatility in operating income and margins amid stable revenue generation.
Net Profit Margin
Verizon Communications Inc., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,588) | 4,357) | 4,700) | 4,156) | |||||||
| Operating revenues | 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) | 34,692) | 31,543) | 30,447) | 31,610) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 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% | 13.88% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 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% | -3.01% | — | — | — | |||||||
| T-Mobile US Inc. | 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% | 4.48% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
Net profit margin = 100
× (Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024
+ Net income attributable to VerizonQ3 2024)
÷ (Operating revenuesQ2 2025
+ Operating revenuesQ1 2025
+ Operating revenuesQ4 2024
+ Operating revenuesQ3 2024)
= 100 × (5,003 + 4,879 + 5,005 + 3,306)
÷ (34,504 + 33,485 + 35,681 + 33,330)
= 13.28%
2 Click competitor name to see calculations.
The financial data indicates several notable trends and fluctuations across the quarters.
- Net Income Attributable to Verizon
- The net income generally displays an upward trajectory from early 2020 through late 2022, with values rising from 4,156 million USD in March 2020 to peaks such as 6,577 million USD in December 2022. However, a significant anomaly is observed in the fourth quarter of 2023 where net income records a substantial loss of -2,705 million USD. Post this downturn, the net income rebounds to positive figures, stabilizing around the 4,600 to 5,000 million USD range into 2025.
- Operating Revenues
- Operating revenues exhibit some volatility but remain relatively steady over the entire period examined. After trailing between approximately 30,000 to 35,000 million USD across the quarters of 2020 and 2021, revenues fluctuate with a slight upward bias towards the end of the period, culminating in values above 34,000 million USD by early 2025. The highest recorded revenue is 35,681 million USD in March 2025, indicating growth potential despite some intermediate variations.
- Net Profit Margin
- The net profit margin shows a clear improvement starting from the beginning of 2021, where it moves from around 13.88% into a peak region above 15%, around mid-2021 to late 2022. Afterward, there is a marked decline starting in the latter part of 2023, coinciding with the net income loss period, where margins fall below 9%, reaching as low as 7.3%. Subsequently, the margin recovers, stabilizing above 12% as it moves into 2025.
Overall, the company's financial performance as measured by net income and profit margin reflects underlying volatility with a significant earnings loss in late 2023. Despite this, operating revenues maintain relative consistency with a slight positive trend, and profit margins return to more robust levels in subsequent periods, suggesting resilience in core operational earnings.
Return on Equity (ROE)
Verizon Communications Inc., ROE calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,588) | 4,357) | 4,700) | 4,156) | |||||||
| Equity attributable to Verizon | 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) | 67,842) | 65,069) | 62,697) | 60,210) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 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% | 26.24% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 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% | -3.20% | — | — | — | |||||||
| T-Mobile US Inc. | 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% | 4.69% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
ROE = 100
× (Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024
+ Net income attributable to VerizonQ3 2024)
÷ Equity attributable to Verizon
= 100 × (5,003 + 4,879 + 5,005 + 3,306)
÷ 103,063 = 17.65%
2 Click competitor name to see calculations.
- Net Income Attributable to Verizon
- The net income values exhibit notable fluctuations over the periods examined. Initially, from March 2020 through December 2021, net income generally trended upward, peaking at 6,407 million USD in September 2021 before a decline to 4,613 million USD in December 2021. The subsequent four quarters through December 2022 show some variability with values oscillating between approximately 4,580 and 6,577 million USD. The first quarter of 2024 demonstrates a significant anomaly with a sharp negative net income of -2,705 million USD, contrasting against preceding positive figures. Following this dip, net income recovers to positive values, ranging from about 3,306 million USD to 5,005 million USD through mid-2025.
- Equity Attributable to Verizon
- Equity figures exhibit a steady, consistent upward trend throughout the timeline. Starting at 60,210 million USD in March 2020, equity increases progressively each quarter, crossing the 100,000 million USD mark by June 2025. Minor fluctuations are present but do not significantly disrupt the overall positive trajectory. An exception appears around March 2024 with a slight decline from a preceding peak, which coincides with the negative net income recorded at that time, followed by a continued upward movement thereafter.
- Return on Equity (ROE)
- ROE is not reported for the initial quarters but emerges at 26.24% in March 2021, maintaining a generally high level near or above 20% through late 2022. From early 2023 onward, there is a clear downward trend in ROE, falling from the low twenties to a low of approximately 10.17% by December 2024. Interestingly, ROE improves sharply after this low, reaching about 17.65% by the middle of 2025. The decline in ROE corresponds with the period of reduced and negative net income, despite the growing equity base, indicating diminishing efficiency in generating income from equity during this interval.
- Overall Observations
- The data reflect a company exhibiting growth in its equity base alongside fluctuating profitability. Net income trends show periodic increases punctuated by a stark loss in early 2024, potentially indicative of an extraordinary event or adjusted accounting treatment. Despite the growth in equity, the return on equity declines materially in the later periods, suggesting challenges in profitability or operational efficiency. Recovery signs in net income and ROE after the nadir indicate potential stabilization or effective corrective actions. The consistent expansion of equity signals ongoing capital accumulation or retention, supporting the company's financial foundation despite variability in earnings performance.
Return on Assets (ROA)
Verizon Communications Inc., ROA calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income attributable to Verizon | 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) | 4,588) | 4,357) | 4,700) | 4,156) | |||||||
| Total assets | 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) | 316,481) | 296,994) | 293,259) | 294,500) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 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% | 5.62% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| AT&T Inc. | 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% | -0.98% | — | — | — | |||||||
| T-Mobile US Inc. | 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% | 1.53% | — | — | — | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q2 2025 Calculation
ROA = 100
× (Net income attributable to VerizonQ2 2025
+ Net income attributable to VerizonQ1 2025
+ Net income attributable to VerizonQ4 2024
+ Net income attributable to VerizonQ3 2024)
÷ Total assets
= 100 × (5,003 + 4,879 + 5,005 + 3,306)
÷ 383,285 = 4.75%
2 Click competitor name to see calculations.
The data reveals several notable trends in the financial performance and position over the periods observed.
- Net Income Attributable to Verizon
- The net income generally demonstrates volatility across the quarters. From March 2020 through December 2021, net income shows an overall upward trajectory, peaking notably in September 2021 at 6,407 million USD. However, a sharp decline is observed in December 2021 to 4,613 million USD, followed by fluctuations around a range between 4,500 and 6,500 million USD through 2023. A significant trough appears in December 2023, with net income falling sharply to -2,705 million USD, indicating a loss. Post this decline, net income recovers in the subsequent quarters through mid-2025, stabilizing around 4,800 to 5,000 million USD. This pattern indicates possible extraordinary events or operational challenges affecting profitability in late 2023.
- Total Assets
- Total assets increased steadily from March 2020 levels near 294,500 million USD to approximately 385,000 million USD by March 2025. The growth is consistent across the entire timespan with no major contractions, reflecting ongoing asset accumulation or revaluation. The incremental increases suggest continued investment or acquisition activity supporting asset base expansion.
- Return on Assets (ROA)
- ROA values, available from December 2020 onward, indicate a moderate downward trend overall. Initial values range between 5.47% and 6.24% through 2021 and early 2022, implying efficient use of assets in generating profit. From around 2023, a notable decline occurs, with ROA dropping to as low as 2.57% in December 2024. A partial recovery occurs into early 2025, reaching near 4.75%. This decrease in ROA corresponds with the significant net income loss in December 2023, suggesting a period of reduced profitability relative to asset base.
Overall, the company shows a pattern of expanding its asset base steadily while experiencing fluctuations in profitability. The sharp net income loss in late 2023 is a critical event that impacts overall returns, reflected in the decline of ROA during this period. The recovery in net income and ROA towards 2025 suggests a rebound from this event, though not yet reaching earlier peak efficiency levels. Monitoring the factors behind the late 2023 downturn would be essential for understanding future performance potential.