Analysis of Debt
Total Debt (Carrying Amount)
Verizon Communications Inc., balance sheet: debt
US$ in millions
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)
| 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
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
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. |