Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level


Short-term Activity Ratios (Summary)

Verizon Communications Inc., short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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
Turnover Ratios
Inventory turnover 41.16 33.09 38.49 35.36 46.56 38.99 41.55 43.62 49.61 41.36 49.86 39.77 45.13 42.28 42.78 39.28 56.76 46.47 41.98
Receivables turnover 5.72 5.52 5.19 5.32 5.26 5.36 5.21 5.44 5.61 5.66 5.36 5.77 6.25 7.33 7.19 8.62 9.79 10.56 9.78
Working capital turnover 64.23 116.09 250.25
Average No. Days
Average inventory processing period 9 11 9 10 8 9 9 8 7 9 7 9 8 9 9 9 6 8 9
Add: Average receivable collection period 64 66 70 69 69 68 70 67 65 64 68 63 58 50 51 42 37 35 37
Operating cycle 73 77 79 79 77 77 79 75 72 73 75 72 66 59 60 51 43 43 46

Based on: 10-Q (filing date: 2020-07-28), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Verizon Communications Inc.’s inventory turnover ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Verizon Communications Inc.’s receivables turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Verizon Communications Inc.’s number of days of receivables outstanding improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Verizon Communications Inc.’s operating cycle improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Inventory Turnover

Verizon Communications Inc., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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)
Cost of services and wireless equipment 11,749  12,296  15,631  13,384  12,721  12,990  15,291  13,331  13,631  13,255  15,175  12,605  12,110  11,666  14,362  12,229  12,221  12,612  14,707  13,305  12,449  12,096 
Inventories 1,289  1,633  1,422  1,538  1,167  1,417  1,336  1,270  1,102  1,285  1,034  1,276  1,116  1,194  1,202  1,318  931  1,142  1,252  1,319  1,149  1,076 
Short-term Activity Ratio
Inventory turnover1 41.16 33.09 38.49 35.36 46.56 38.99 41.55 43.62 49.61 41.36 49.86 39.77 45.13 42.28 42.78 39.28 56.76 46.47 41.98

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Inventory turnover = (Cost of services and wireless equipmentQ2 2020 + Cost of services and wireless equipmentQ1 2020 + Cost of services and wireless equipmentQ4 2019 + Cost of services and wireless equipmentQ3 2019) ÷ Inventories
= (11,749 + 12,296 + 15,631 + 13,384) ÷ 1,289 = 41.16

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Verizon Communications Inc.’s inventory turnover ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Receivables Turnover

Verizon Communications Inc., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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 revenues 30,447  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 
Accounts receivable, net 22,672  23,797  25,429  24,713  24,926  24,469  25,102  24,012  23,099  22,595  23,493  21,549  19,771  16,863  17,513  14,832  13,294  12,485  13,457  13,105  13,444  12,698 
Short-term Activity Ratio
Receivables turnover1 5.72 5.52 5.19 5.32 5.26 5.36 5.21 5.44 5.61 5.66 5.36 5.77 6.25 7.33 7.19 8.62 9.79 10.56 9.78
Benchmarks
Receivables Turnover, Competitors2
AT&T Inc. 9.16 9.00 8.00 7.96 8.20 7.44 6.45 6.25 6.21 9.77 9.72 10.12 10.80 10.78 9.75 9.73 10.25 9.63 8.88

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Receivables turnover = (Operating revenuesQ2 2020 + Operating revenuesQ1 2020 + Operating revenuesQ4 2019 + Operating revenuesQ3 2019) ÷ Accounts receivable, net
= (30,447 + 31,610 + 34,775 + 32,894) ÷ 22,672 = 5.72

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Verizon Communications Inc.’s receivables turnover ratio improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Working Capital Turnover

Verizon Communications Inc., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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)
Current assets 37,333  40,705  37,473  34,895  33,308  33,397  34,636  33,154  30,876  31,025  29,913  30,867  28,823  27,158  26,395  25,621  20,844  23,615  22,280  21,768  21,502  22,836 
Less: Current liabilities 38,886  41,057  44,868  39,209  38,214  38,607  37,930  34,167  32,329  31,615  33,037  28,930  27,758  26,664  30,340  30,298  34,408  33,312  35,052  34,492  30,645  28,713 
Working capital (1,553) (352) (7,395) (4,314) (4,906) (5,210) (3,294) (1,013) (1,453) (590) (3,124) 1,937  1,065  494  (3,945) (4,677) (13,564) (9,697) (12,772) (12,724) (9,143) (5,877)
 
Operating revenues 30,447  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 
Short-term Activity Ratio
Working capital turnover1 64.23 116.09 250.25
Benchmarks
Working Capital Turnover, Competitors2
AT&T Inc. 20.09 5.61 29.26

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Working capital turnover = (Operating revenuesQ2 2020 + Operating revenuesQ1 2020 + Operating revenuesQ4 2019 + Operating revenuesQ3 2019) ÷ Working capital
= (30,447 + 31,610 + 34,775 + 32,894) ÷ -1,553 =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital.

Average Inventory Processing Period

Verizon Communications Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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
Inventory turnover 41.16 33.09 38.49 35.36 46.56 38.99 41.55 43.62 49.61 41.36 49.86 39.77 45.13 42.28 42.78 39.28 56.76 46.47 41.98
Short-term Activity Ratio (no. days)
Average inventory processing period1 9 11 9 10 8 9 9 8 7 9 7 9 8 9 9 9 6 8 9

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 41.16 = 9

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Verizon Communications Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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
Receivables turnover 5.72 5.52 5.19 5.32 5.26 5.36 5.21 5.44 5.61 5.66 5.36 5.77 6.25 7.33 7.19 8.62 9.79 10.56 9.78
Short-term Activity Ratio (no. days)
Average receivable collection period1 64 66 70 69 69 68 70 67 65 64 68 63 58 50 51 42 37 35 37
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AT&T Inc. 40 41 46 46 45 49 57 58 59 37 38 36 34 34 37 37 36 38 41

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.72 = 64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Verizon Communications Inc.’s number of days of receivables outstanding improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.

Operating Cycle

Verizon Communications Inc., operating cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Jun 30, 2020 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
Average inventory processing period 9 11 9 10 8 9 9 8 7 9 7 9 8 9 9 9 6 8 9
Average receivable collection period 64 66 70 69 69 68 70 67 65 64 68 63 58 50 51 42 37 35 37
Short-term Activity Ratio
Operating cycle1 73 77 79 79 77 77 79 75 72 73 75 72 66 59 60 51 43 43 46

Based on: 10-Q (filing date: 2020-07-28), 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 Q2 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 9 + 64 = 73

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Verizon Communications Inc.’s operating cycle improved from Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.