Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Debt 

Microsoft Excel

Total Debt (Carrying Amount)

Verizon Communications Inc., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Debt maturing within one year 22,633 12,973 9,963 7,443 5,889
Long-term debt, excluding maturing within one year 121,381 137,701 140,676 143,425 123,173
Total short-term and long-term debt, including finance leases (carrying amount) 144,014 150,674 150,639 150,868 129,062

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Debt item Description The company
Total short-term and long-term debt, including finance leases (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Verizon Communications Inc. total debt increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2024
Selected Financial Data (US$ in millions)
Short-term and long-term debt, excluding finance leases 137,016
Finance lease obligations 2,349
Total short-term and long-term debt, including finance leases (fair value) 139,365
Financial Ratio
Debt, fair value to carrying amount ratio 0.97

Based on: 10-K (reporting date: 2024-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 7.63%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
6.94% 29,325 2,035
7.88% 33,851 2,667
8.95% 52,719 4,718
5.56% 1,171 65
5.56% 1,735 96
6.80% 38 3
7.88% 56 4
8.38% 286 24
8.75% 328 29
6.09% 16,363 997
5.56% 9,805 545
4.80% 2,349 113
Total 148,026 11,296
7.63%

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 11,296 ÷ 148,026 = 7.63%


Interest Costs Incurred

Verizon Communications Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Interest expense 6,649 5,524 3,613 3,485 4,247
Capitalized interest costs 963 1,818 2,030 1,841 555
Interest costs on debt balances and net amortization of debt discount 7,612 7,342 5,643 5,326 4,802

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Debt item Description The company
Interest expense Amount of the cost of borrowed funds accounted for as interest expense for debt. Verizon Communications Inc. interest expense increased from 2022 to 2023 and from 2023 to 2024.
Capitalized interest costs Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Verizon Communications Inc. capitalized interest costs decreased from 2022 to 2023 and from 2023 to 2024.
Interest costs on debt balances and net amortization of debt discount Total interest costs incurred during the period and either capitalized or charged against earnings. Verizon Communications Inc. interest costs on debt balances and net amortization of debt discount increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income attributable to Verizon 17,506 11,614 21,256 22,065 17,801
Add: Net income attributable to noncontrolling interest 443 481 492 553 547
Add: Income tax expense 5,030 4,892 6,523 6,802 5,619
Add: Interest expense 6,649 5,524 3,613 3,485 4,247
Earnings before interest and tax (EBIT) 29,628 22,511 31,884 32,905 28,214
 
Interest costs on debt balances and net amortization of debt discount 7,612 7,342 5,643 5,326 4,802
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 4.46 4.08 8.82 9.44 6.64
Adjusted interest coverage ratio (with capitalized interest)2 3.89 3.07 5.65 6.18 5.88

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 29,628 ÷ 6,649 = 4.46

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs on debt balances and net amortization of debt discount
= 29,628 ÷ 7,612 = 3.89


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Verizon Communications Inc. adjusted interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.