Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Verizon Communications Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Wireless licenses	156,613)	155,667)	149,796)	147,619)	96,097)
Deposits for wireless licenses	—)	—)	—)	—)	2,772)
Goodwill	22,841)	22,843)	28,671)	28,603)	24,773)
Customer lists	4,242)	4,335)	4,335)	4,201)	4,021)
Non-network internal-use software	28,136)	25,524)	23,421)	21,310)	21,685)
Other	2,664)	2,656)	2,806)	2,974)	1,771)
Other intangible assets, gross amount	35,042)	32,515)	30,562)	28,485)	27,477)
Accumulated amortization	(23,913)	(21,458)	(19,101)	(16,808)	(18,064)
Other intangible assets, net amount	11,129)	11,057)	11,461)	11,677)	9,413)
Wireless licenses, goodwill and other intangible assets	190,583)	189,567)	189,928)	187,899)	133,055)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Verizon Communications Inc. goodwill decreased from 2022 to 2023 and from 2023 to 2024.
Wireless licenses, goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Verizon Communications Inc. wireless licenses, goodwill and other intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Verizon Communications Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	384,711)	380,255)	379,680)	366,596)	316,481)
Less: Goodwill	22,841)	22,843)	28,671)	28,603)	24,773)
Total assets (adjusted)	361,870)	357,412)	351,009)	337,993)	291,708)
Adjustment to Equity Attributable To Verizon
Equity attributable to Verizon (as reported)	99,237)	92,430)	91,144)	81,790)	67,842)
Less: Goodwill	22,841)	22,843)	28,671)	28,603)	24,773)
Equity attributable to Verizon (adjusted)	76,396)	69,587)	62,473)	53,187)	43,069)
Adjustment to Net Income Attributable To Verizon
Net income attributable to Verizon (as reported)	17,506)	11,614)	21,256)	22,065)	17,801)
Add: Goodwill impairment charge	—)	5,868)	16)	—)	—)
Net income attributable to Verizon (adjusted)	17,506)	17,482)	21,272)	22,065)	17,801)

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).

Verizon Communications Inc., Financial Data: Reported vs. Adjusted

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Verizon Communications Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	12.99%	8.67%	15.53%	16.51%	13.88%
Adjusted net profit margin	12.99%	13.05%	15.55%	16.51%	13.88%
Total Asset Turnover
Reported total asset turnover	0.35	0.35	0.36	0.36	0.41
Adjusted total asset turnover	0.37	0.37	0.39	0.40	0.44
Financial Leverage
Reported financial leverage	3.88	4.11	4.17	4.48	4.66
Adjusted financial leverage	4.74	5.14	5.62	6.35	6.77
Return on Equity (ROE)
Reported ROE	17.64%	12.57%	23.32%	26.98%	26.24%
Adjusted ROE	22.91%	25.12%	34.05%	41.49%	41.33%
Return on Assets (ROA)
Reported ROA	4.55%	3.05%	5.60%	6.02%	5.62%
Adjusted ROA	4.84%	4.89%	6.06%	6.53%	6.10%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Verizon Communications Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Profitability Ratio
Net profit margin¹	12.99%	8.67%	15.53%	16.51%	13.88%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	17,506)	17,482)	21,272)	22,065)	17,801)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Profitability Ratio
Adjusted net profit margin²	12.99%	13.05%	15.55%	16.51%	13.88%

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 Net profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 17,506 ÷ 134,788 = 12.99%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Verizon ÷ Operating revenues
= 100 × 17,506 ÷ 134,788 = 12.99%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Verizon Communications Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Activity Ratio
Total asset turnover¹	0.35	0.35	0.36	0.36	0.41
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Operating revenues	134,788)	133,974)	136,835)	133,613)	128,292)
Adjusted total assets	361,870)	357,412)	351,009)	337,993)	291,708)
Activity Ratio
Adjusted total asset turnover²	0.37	0.37	0.39	0.40	0.44

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 Total asset turnover = Operating revenues ÷ Total assets
= 134,788 ÷ 384,711 = 0.35

² Adjusted total asset turnover = Operating revenues ÷ Adjusted total assets
= 134,788 ÷ 361,870 = 0.37

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Verizon Communications Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Equity attributable to Verizon	99,237)	92,430)	91,144)	81,790)	67,842)
Solvency Ratio
Financial leverage¹	3.88	4.11	4.17	4.48	4.66
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	361,870)	357,412)	351,009)	337,993)	291,708)
Adjusted equity attributable to Verizon	76,396)	69,587)	62,473)	53,187)	43,069)
Solvency Ratio
Adjusted financial leverage²	4.74	5.14	5.62	6.35	6.77

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 Financial leverage = Total assets ÷ Equity attributable to Verizon
= 384,711 ÷ 99,237 = 3.88

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to Verizon
= 361,870 ÷ 76,396 = 4.74

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Verizon Communications Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Equity attributable to Verizon	99,237)	92,430)	91,144)	81,790)	67,842)
Profitability Ratio
ROE¹	17.64%	12.57%	23.32%	26.98%	26.24%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	17,506)	17,482)	21,272)	22,065)	17,801)
Adjusted equity attributable to Verizon	76,396)	69,587)	62,473)	53,187)	43,069)
Profitability Ratio
Adjusted ROE²	22.91%	25.12%	34.05%	41.49%	41.33%

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 ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 17,506 ÷ 99,237 = 17.64%

² Adjusted ROE = 100 × Adjusted net income attributable to Verizon ÷ Adjusted equity attributable to Verizon
= 100 × 17,506 ÷ 76,396 = 22.91%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Verizon Communications Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Verizon	17,506)	11,614)	21,256)	22,065)	17,801)
Total assets	384,711)	380,255)	379,680)	366,596)	316,481)
Profitability Ratio
ROA¹	4.55%	3.05%	5.60%	6.02%	5.62%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Verizon	17,506)	17,482)	21,272)	22,065)	17,801)
Adjusted total assets	361,870)	357,412)	351,009)	337,993)	291,708)
Profitability Ratio
Adjusted ROA²	4.84%	4.89%	6.06%	6.53%	6.10%

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 ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 17,506 ÷ 384,711 = 4.55%

² Adjusted ROA = 100 × Adjusted net income attributable to Verizon ÷ Adjusted total assets
= 100 × 17,506 ÷ 361,870 = 4.84%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Verizon Communications Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Verizon Communications Inc. (NYSE:VZ)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Verizon Communications Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Verizon Communications Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)