Analysis of Debt
Total Debt (Carrying Amount)
Verizon Communications Inc., balance sheet: debt
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
| 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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term and long-term debt, excluding finance leases | 145,610) |
| Finance lease obligations | 2,091) |
| Total short-term and long-term debt, including finance leases (fair value) | 147,701) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.98 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 7.70%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 6.94% | 33,316) | 2,312) | |
| 7.88% | 37,229) | 2,934) | |
| 8.95% | 55,355) | 4,954) | |
| 6.14% | 2,099) | 129) | |
| 6.14% | 2,029) | 125) | |
| 7.88% | 94) | 7) | |
| 6.50% | 79) | 5) | |
| 8.75% | 535) | 47) | |
| 6.09% | 14,048) | 856) | |
| 6.14% | 8,163) | 501) | |
| 2.90% | 2,091) | 61) | |
| Total | 155,038) | 11,930) | |
| 7.70% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 11,930 ÷ 155,038 = 7.70%
Interest Costs Incurred
Verizon Communications Inc., interest costs incurred
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
| 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 2021 to 2022 and from 2022 to 2023. |
| Capitalized interest costs | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | Verizon Communications Inc. capitalized interest costs increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
Adjusted Interest Coverage Ratio
Based on: 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), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 22,511 ÷ 5,524 = 4.08
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs on debt balances and net amortization of debt discount
= 22,511 ÷ 7,342 = 3.07
| 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 2021 to 2022 and from 2022 to 2023. |