Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Verizon Communications Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 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).
The short-term operating activity ratios exhibit varied trends over the observed period. Inventory turnover generally increased from early 2022 through mid-2023, then stabilized with some fluctuation. Receivables turnover demonstrated a consistent, albeit gradual, decline throughout the period. The average inventory processing period decreased significantly from early 2022 to mid-2023, then remained relatively stable. Conversely, the average receivable collection period showed a consistent increase, while the operating cycle displayed a similar, though less pronounced, upward trend.
- Inventory Turnover
- Inventory turnover increased from 15.61 in March 2022 to a peak of 29.87 in June 2023. Subsequent quarters show a moderation, fluctuating between 20.67 and 26.68. This suggests an initial improvement in inventory management efficiency, followed by a stabilization. The latest value, 23.25 in December 2025, is still higher than the initial value in March 2022.
- Receivables Turnover
- A consistent downward trend is observed in receivables turnover, decreasing from 5.69 in March 2022 to 5.10 in December 2025. This indicates a lengthening of the time it takes to collect receivables, potentially signaling a weakening in credit policies or collection efforts, or a shift in customer payment behavior.
- Average Inventory Processing Period
- The average inventory processing period experienced a substantial decrease from 23 days in March 2022 to 12 days in June 2023. It then stabilized, fluctuating between 14 and 18 days for the remainder of the period. This suggests improved efficiency in managing inventory and converting it into sales. The latest value of 16 days in December 2025 remains significantly lower than the initial value.
- Average Receivable Collection Period
- The average receivable collection period increased steadily from 64 days in March 2022 to 72 days in December 2025. This lengthening collection period aligns with the declining receivables turnover and suggests a growing challenge in converting receivables into cash. The increase is relatively consistent across the observed period.
- Operating Cycle
- The operating cycle generally increased from 87 days in March 2022 to 88 days in December 2025, with some fluctuation. This increase, driven primarily by the lengthening receivable collection period, indicates that it is taking longer to convert investments in inventory into cash. The operating cycle remained relatively stable between 84 and 87 days for much of 2023 and 2024 before increasing in the final two quarters.
In summary, the company demonstrates improving inventory management, as evidenced by the increased inventory turnover and reduced processing period. However, this is offset by a concerning trend of declining receivables turnover and a lengthening collection period, ultimately contributing to a slightly extended operating cycle.
Turnover Ratios
Average No. Days
Inventory Turnover
Verizon Communications Inc., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cost of services and wireless equipment | 16,478) | 13,346) | 13,885) | 13,056) | 15,514) | 13,240) | 12,471) | 12,872) | 15,182) | 13,437) | 12,764) | 13,504) | 15,762) | 14,601) | 14,420) | 14,350) | |||||
| Inventories | 2,441) | 2,700) | 2,137) | 2,197) | 2,247) | 2,523) | 1,841) | 2,076) | 2,057) | 2,240) | 1,896) | 2,381) | 2,388) | 3,133) | 3,646) | 3,659) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 23.25 | 20.67 | 26.06 | 24.71 | 24.08 | 21.31 | 29.31 | 26.13 | 26.68 | 24.76 | 29.87 | 24.48 | 24.76 | 18.63 | 15.71 | 15.61 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 21.00 | 17.39 | 21.22 | 19.01 | 21.68 | 19.35 | 27.18 | 23.39 | 23.02 | 19.76 | 21.26 | 18.07 | 16.28 | 14.50 | 19.34 | 22.66 | |||||
| T-Mobile US Inc. | 13.63 | 13.20 | 18.10 | 15.47 | 18.45 | 16.36 | 22.27 | 19.48 | 17.99 | 18.08 | 23.32 | 19.63 | 19.22 | 16.91 | 16.93 | 13.90 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of services and wireless equipmentQ4 2025
+ Cost of services and wireless equipmentQ3 2025
+ Cost of services and wireless equipmentQ2 2025
+ Cost of services and wireless equipmentQ1 2025)
÷ Inventories
= (16,478 + 13,346 + 13,885 + 13,056)
÷ 2,441 = 23.25
2 Click competitor name to see calculations.
The inventory turnover ratio exhibits considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrates relative stability, followed by a marked increase, and then a period of variability before settling into a range similar to earlier levels.
- Initial Period (Mar 31, 2022 – Jun 30, 2022)
- The inventory turnover ratio begins at 15.61 and increases slightly to 15.71. This suggests a consistent, but modest, rate at which inventories are being sold and replenished during this timeframe.
- Increasing Trend (Sep 30, 2022 – Jun 30, 2023)
- A significant upward trend is observed, with the ratio climbing from 18.63 to a peak of 29.87. This indicates a substantial acceleration in inventory liquidation, potentially driven by increased sales, promotional activities, or a deliberate reduction in inventory levels. The cost of services and wireless equipment also increased during this period, but not at the same rate as the inventory turnover.
- Subsequent Variability (Sep 30, 2023 – Dec 31, 2025)
- Following the peak, the ratio experiences volatility, fluctuating between 20.67 and 26.68. While remaining generally elevated compared to the initial period, this variability suggests a less predictable pattern of inventory movement. The ratio concludes the period at 23.25, which is lower than the peak but still above the initial values. The cost of services and wireless equipment shows a similar pattern of fluctuation, with a notable increase in the final period.
- Inventory Levels
- Inventories generally decreased from 3,659 to 2,441 over the period. The most significant reduction occurred between March 31, 2022, and June 30, 2023, coinciding with the increase in inventory turnover. Fluctuations in inventory levels appear to correlate with changes in the turnover ratio, though the relationship is not always direct.
Overall, the observed pattern suggests a dynamic inventory management strategy. The initial stability gives way to a period of aggressive inventory reduction, followed by a more fluctuating pattern. The company appears capable of adapting its inventory levels to changing market conditions or internal objectives.
Receivables Turnover
Verizon Communications Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenues | 36,381) | 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) | |||||
| Accounts receivable, net | 27,097) | 25,920) | 26,275) | 25,889) | 26,109) | 25,954) | 25,607) | 25,319) | 25,085) | 23,602) | 23,186) | 22,856) | 24,506) | 23,670) | 23,909) | 23,615) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 5.10 | 5.30 | 5.21 | 5.23 | 5.16 | 5.17 | 5.24 | 5.29 | 5.34 | 5.68 | 5.82 | 5.96 | 5.58 | 5.73 | 5.62 | 5.69 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 14.21 | 13.93 | 14.02 | 13.32 | 12.69 | 13.46 | 12.62 | 12.77 | 11.90 | 13.59 | 13.05 | 11.86 | 10.53 | 11.45 | 12.33 | 8.98 | |||||
| T-Mobile US Inc. | 18.12 | 16.89 | 18.28 | 18.83 | 19.04 | 18.67 | 17.33 | 18.46 | 16.74 | 17.41 | 17.11 | 18.11 | 17.90 | 18.52 | 17.96 | 20.04 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Receivables turnover
= (Operating revenuesQ4 2025
+ Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025)
÷ Accounts receivable, net
= (36,381 + 33,821 + 34,504 + 33,485)
÷ 27,097 = 5.10
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits a generally declining trend over the observed period, punctuated by some quarterly fluctuations. Initially, the ratio remained relatively stable, hovering around 5.6 to 5.9 between March 2022 and March 2023. However, a noticeable decrease began in the latter half of 2023, continuing into 2024 and 2025.
- Overall Trend
- From a high of 5.96 in March 2023, the receivables turnover ratio decreased to 5.10 by December 2025. This represents a cumulative decline of approximately 14.4%. The rate of decline appears to have accelerated in the most recent quarters.
- Short-Term Fluctuations
- While the overall trend is downward, quarterly variations exist. A slight increase was observed from June 2024 (5.24) to September 2024 (5.17), followed by a minor increase to 5.16 in December 2024. A small increase to 5.23 was observed in March 2025, followed by a slight decrease to 5.21 in June 2025, and a further increase to 5.30 in September 2025 before declining to 5.10 in December 2025.
- Recent Performance
- The most recent quarterly values (December 2024 and December 2025) indicate the lowest receivables turnover ratio within the analyzed timeframe. The ratio decreased from 5.16 in December 2024 to 5.10 in December 2025, suggesting a continued weakening in the efficiency of collecting receivables.
The observed decline in receivables turnover may warrant further investigation. A lower ratio could indicate a lengthening of the collection period, potentially due to changes in credit policies, customer payment behavior, or an increase in uncollectible accounts. It is important to consider these factors in conjunction with other financial metrics to gain a comprehensive understanding of the company’s financial health.
Working Capital Turnover
Verizon Communications Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 56,922) | 44,010) | 38,846) | 37,353) | 40,523) | 40,641) | 38,056) | 37,957) | 36,814) | 38,119) | 37,388) | 35,722) | 37,857) | 39,746) | 37,499) | 35,580) | |||||
| Less: Current liabilities | 62,370) | 59,563) | 60,952) | 61,066) | 64,771) | 61,816) | 60,806) | 53,631) | 53,223) | 55,677) | 51,404) | 47,768) | 50,171) | 53,141) | 49,224) | 46,585) | |||||
| Working capital | (5,448) | (15,553) | (22,106) | (23,713) | (24,248) | (21,175) | (22,750) | (15,674) | (16,409) | (17,558) | (14,016) | (12,046) | (12,314) | (13,395) | (11,725) | (11,005) | |||||
| Operating revenues | 36,381) | 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) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | — | 177.07 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| T-Mobile US Inc. | — | — | 18.00 | 21.69 | — | 50.77 | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Working capital turnover
= (Operating revenuesQ4 2025
+ Operating revenuesQ3 2025
+ Operating revenuesQ2 2025
+ Operating revenuesQ1 2025)
÷ Working capital
= (36,381 + 33,821 + 34,504 + 33,485)
÷ -5,448 = —
2 Click competitor name to see calculations.
The working capital turnover ratio for the analyzed period demonstrates a volatile pattern, with significant fluctuations observed across the quarters. Initially, the working capital balance is consistently negative, indicating a financing gap where current liabilities exceed current assets. This negative working capital position persists throughout the observed timeframe, though its magnitude varies.
- Working Capital Trend
- Working capital exhibits a generally increasing negative trend from March 2022 through September 2023, reaching a minimum of -17,558 US$ in millions. A notable decrease in the negative working capital is then observed in December 2023, followed by further reductions through December 2025, culminating in -5,448 US$ in millions. This suggests improving short-term financial health towards the end of the period, although the balance remains negative.
- Revenue Trend
- Operating revenues show moderate fluctuations throughout the period. Revenues generally increased from March 2022 to December 2022, experienced a dip in the first half of 2023, and then showed a recovery towards the end of 2023 and into 2024. A slight increase is observed in the final quarters of the analyzed period, reaching 36,381 US$ in millions by March 2025.
- Working Capital Turnover Ratio
- Due to the consistently negative working capital, the working capital turnover ratio cannot be meaningfully calculated or interpreted as a positive value. A negative working capital balance results in a negative turnover ratio, which does not provide a standard measure of operational efficiency. The ratio's absolute value, while calculable, would not reflect the typical interpretation of how efficiently working capital is being utilized to generate sales. The trend in the absolute value of the ratio would mirror the changes in working capital and revenues, but its practical significance is limited given the negative base.
The observed trend of decreasing negative working capital, coupled with relatively stable revenues, suggests a potential improvement in short-term liquidity management. However, the continued negative working capital position warrants ongoing monitoring and analysis to understand the underlying causes and potential risks.
Average Inventory Processing Period
Verizon Communications Inc., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 23.25 | 20.67 | 26.06 | 24.71 | 24.08 | 21.31 | 29.31 | 26.13 | 26.68 | 24.76 | 29.87 | 24.48 | 24.76 | 18.63 | 15.71 | 15.61 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 16 | 18 | 14 | 15 | 15 | 17 | 12 | 14 | 14 | 15 | 12 | 15 | 15 | 20 | 23 | 23 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 17 | 21 | 17 | 19 | 17 | 19 | 13 | 16 | 16 | 18 | 17 | 20 | 22 | 25 | 19 | 16 | |||||
| T-Mobile US Inc. | 27 | 28 | 20 | 24 | 20 | 22 | 16 | 19 | 20 | 20 | 16 | 19 | 19 | 22 | 22 | 26 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 23.25 = 16
2 Click competitor name to see calculations.
The average inventory processing period demonstrates a generally decreasing trend over the observed timeframe, with some quarterly fluctuations. Initially, the period remained stable before exhibiting increased variability in later periods.
- Overall Trend
- From March 31, 2022, through December 31, 2022, the average inventory processing period decreased from 23 days to 15 days. This indicates an improvement in inventory management efficiency, with inventory being converted into sales more quickly. The period then fluctuated between 12 and 18 days through December 31, 2025, suggesting some inconsistency in maintaining the improved efficiency.
- Initial Stability (Mar 31, 2022 - Jun 30, 2022)
- The average inventory processing period remained constant at 23 days for the first two quarters of the period. This suggests a stable inventory management process during this time.
- Significant Improvement (Sep 30, 2022 - Jun 30, 2023)
- A notable decrease in the average inventory processing period occurred from 20 days on September 30, 2022, to 12 days on June 30, 2023. This represents the most significant improvement in inventory efficiency within the observed period. This could be attributed to successful implementation of inventory reduction strategies or increased sales velocity.
- Fluctuations and Recent Trend (Mar 31, 2023 - Dec 31, 2025)
- Following the period of improvement, the average inventory processing period experienced fluctuations, ranging from 12 to 18 days. The most recent period, December 31, 2025, shows a value of 16 days. While still lower than the initial values, this indicates a potential slowing of the efficiency gains observed earlier. The period has increased from 14 days in June 30, 2025 to 16 days in December 31, 2025.
The observed fluctuations warrant further investigation to determine the underlying causes and whether they represent temporary variations or a shift in the long-term trend. Continued monitoring of this metric is recommended to assess the sustainability of inventory management improvements.
Average Receivable Collection Period
Verizon Communications Inc., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 5.10 | 5.30 | 5.21 | 5.23 | 5.16 | 5.17 | 5.24 | 5.29 | 5.34 | 5.68 | 5.82 | 5.96 | 5.58 | 5.73 | 5.62 | 5.69 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 72 | 69 | 70 | 70 | 71 | 71 | 70 | 69 | 68 | 64 | 63 | 61 | 65 | 64 | 65 | 64 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 26 | 26 | 26 | 27 | 29 | 27 | 29 | 29 | 31 | 27 | 28 | 31 | 35 | 32 | 30 | 41 | |||||
| T-Mobile US Inc. | 20 | 22 | 20 | 19 | 19 | 20 | 21 | 20 | 22 | 21 | 21 | 20 | 20 | 20 | 20 | 18 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.10 = 72
2 Click competitor name to see calculations.
The average receivable collection period exhibited a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occurred, the overall movement suggests a lengthening in the time required to collect receivables.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The average receivable collection period remained relatively stable, fluctuating between 64 and 65 days. This indicates consistent collection practices during this timeframe.
- Early 2023 (Mar 31, 2023 – Jun 30, 2023)
- A slight decrease to 61 days was observed in March 2023, followed by a return to 63 days in June 2023. This suggests a temporary improvement in collection efficiency, but not a significant shift.
- Mid-2023 to Late 2024 (Sep 30, 2023 – Dec 31, 2024)
- A consistent upward trend is apparent, with the collection period increasing from 64 days in September 2023 to 71 days by December 2024. This represents a notable lengthening in the time taken to collect receivables, potentially indicating evolving credit terms, customer payment behavior, or collection process inefficiencies.
- Early 2025 (Mar 31, 2025 – Jun 30, 2025)
- The collection period stabilized at 70 days for two consecutive quarters, suggesting the upward trend may have paused. However, this stabilization occurred at a higher level than observed in earlier periods.
- Late 2025 (Sep 30, 2025 – Dec 31, 2025)
- The average receivable collection period increased to 72 days in December 2025, concluding the period with the longest collection time observed. This final increase reinforces the overall lengthening trend.
In summary, the average receivable collection period generally increased over the analyzed timeframe. While some quarterly variations existed, the overall pattern suggests a gradual decline in the speed of collecting receivables, warranting further investigation into potential underlying causes.
Operating Cycle
Verizon Communications Inc., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 16 | 18 | 14 | 15 | 15 | 17 | 12 | 14 | 14 | 15 | 12 | 15 | 15 | 20 | 23 | 23 | |||||
| Average receivable collection period | 72 | 69 | 70 | 70 | 71 | 71 | 70 | 69 | 68 | 64 | 63 | 61 | 65 | 64 | 65 | 64 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 88 | 87 | 84 | 85 | 86 | 88 | 82 | 83 | 82 | 79 | 75 | 76 | 80 | 84 | 88 | 87 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| AT&T Inc. | 43 | 47 | 43 | 46 | 46 | 46 | 42 | 45 | 47 | 45 | 45 | 51 | 57 | 57 | 49 | 57 | |||||
| T-Mobile US Inc. | 47 | 50 | 40 | 43 | 39 | 42 | 37 | 39 | 42 | 41 | 37 | 39 | 39 | 42 | 42 | 44 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 16 + 72 = 88
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The operating cycle metrics demonstrate discernible trends over the observed period. Generally, the components of the operating cycle, and consequently the cycle itself, exhibit fluctuations but remain within a relatively constrained range. A closer examination reveals specific patterns within each metric.
- Average Inventory Processing Period
- The average inventory processing period generally decreased from 23 days in the first quarter of 2022 to 12 days in the second quarter of 2023. It then experienced some volatility, ranging between 12 and 18 days through the end of 2025. The lowest point was 12 days, observed twice, while the highest remained at the initial value of 23 days. This suggests improved inventory management efficiency initially, followed by a stabilization with minor fluctuations.
- Average Receivable Collection Period
- The average receivable collection period showed a gradual increase over the analyzed timeframe. Starting at 64 days in the first quarter of 2022, it rose to 72 days by the final quarter of 2025. The increase was not linear, with some quarterly decreases, but the overall trend is upward. This indicates a lengthening in the time required to collect receivables, potentially signaling changes in credit policies or customer payment behavior.
- Operating Cycle
- The operating cycle, calculated as the sum of the inventory processing and receivable collection periods, initially decreased from 87 days in the first quarter of 2022 to 75 days in the second quarter of 2023. Following this decrease, the operating cycle experienced fluctuations, peaking at 88 days in both the third quarter of 2024 and the fourth quarter of 2025. The overall trend is relatively stable, with the cycle generally remaining between 75 and 88 days. The increase in the receivable collection period appears to be the primary driver of the cycle’s stabilization and eventual slight increase towards the end of the period.
In summary, while inventory management improved in terms of processing time, the lengthening of the receivable collection period has offset some of those gains, resulting in a relatively stable, but slightly increasing, operating cycle. Continued monitoring of these ratios is recommended to identify any significant deviations from these observed trends.