Verizon Communications Inc. (NYSE:VZ)

Total Asset Turnover

The reported total asset turnover ratio exhibited a gradual decline from 0.41 in 2020 to 0.35 in 2023 and remained stable at 0.35 in 2024. The adjusted total asset turnover showed a similar trend, decreasing from 0.40 in 2020 to 0.35 in 2023 and staying constant through 2024. This indicates a slight reduction in asset utilization efficiency over the analyzed period.

Current Ratio

The reported current ratio decreased steadily over the years, starting at 1.38 in 2020 and falling to 0.63 by 2024. The adjusted current ratio followed a comparable pattern, declining from 1.41 in 2020 to 0.64 in 2024. This consistent downward trend suggests a weakening short-term liquidity position.

Debt to Equity

The reported debt to equity ratio declined from 1.90 in 2020 to 1.45 in 2024, with adjusted values showing a reduction from 1.42 to 1.14 in the same period. This trend reflects a gradual deleveraging and a shift toward a stronger equity base relative to debt.

Debt to Capital

Reported debt to capital decreased from 0.66 in 2020 to 0.59 in 2024, while adjusted figures dropped from 0.59 to 0.53. The reduction in this ratio aligns with the deleveraging trend observed in the debt to equity ratios, indicating improved capital structure stability.

Financial Leverage

The reported financial leverage declined from 4.66 in 2020 to 3.88 in 2024. Adjusted financial leverage followed a similar downward trajectory, decreasing from 2.99 to 2.60 over the same period. This decreasing leverage suggests reduced reliance on borrowed funds relative to equity.

Net Profit Margin

Reported net profit margin increased from 13.88% in 2020 to a peak of 16.51% in 2021, then declined significantly to 8.67% in 2023 before partially recovering to 12.99% in 2024. The adjusted net profit margin demonstrated a similar pattern, peaking at 19.21% in 2021, followed by a decline to 11.31% in 2023 and a rebound to 14.36% in 2024. These fluctuations indicate variable profitability, with notable reductions in 2023 followed by some improvement in 2024.

Return on Equity (ROE)

Reported ROE peaked at 26.98% in 2021, falling thereafter to a low of 12.57% in 2023 and rising modestly to 17.64% in 2024. Adjusted ROE mirrored this trend, declining from 20.60% in 2021 to 10.79% in 2023 and recovering to 13.05% in 2024. This pattern underscores diminished shareholder returns in recent years, with partial recovery noted in the latest period.

Return on Assets (ROA)

Reported ROA rose from 5.62% in 2020 to 6.02% in 2021 before decreasing to a trough of 3.05% in 2023 and then increasing to 4.55% in 2024. Adjusted ROA exhibited consistent trends, moving from 6.09% in 2020 to 6.99% in 2021, declining to 3.98% in 2023, and improving to 5.02% in 2024. This suggests a pattern of fluctuating asset profitability, with peak efficiency in early years and some recovery in the most recent year.

Operating Revenues

The operating revenues showed a steady increase from 2020 to 2022, rising from $128,292 million to $136,835 million. However, in 2023, there was a slight decline to $133,974 million, followed by a modest recovery in 2024 to $134,788 million. Overall, the revenue trend indicates moderate growth with a brief dip in the penultimate year.

Total Assets

Total assets increased consistently each year, growing from $316,481 million in 2020 to $384,711 million in 2024. The most significant increment appears between 2020 and 2021. The growth trend reflects ongoing asset accumulation or capital investments.

Reported Total Asset Turnover

The reported total asset turnover ratio declined from 0.41 in 2020 to 0.36 in 2021 and remained relatively stable at 0.36 in 2022. It then slightly decreased again to 0.35 in both 2023 and 2024. This trend suggests a reducing efficiency in generating revenue from the asset base over time.

Adjusted Total Assets

Adjusted total assets mirrored the pattern of total assets, increasing year-over-year from $317,645 million in 2020 to $385,714 million in 2024. This consistency indicates the adjustment methodology results in values closely aligned with reported total assets, showing a gradual expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio followed a similar trend to the reported ratio, declining from 0.40 in 2020 to 0.36 in 2021 and 2022, then tapering to 0.35 in 2023 and 2024. This decline corroborates a decrease in efficiency when considering adjusted asset values.

The analysis of the financial data over the five-year period reveals notable trends in liquidity and working capital management. There is a general decline in current assets from US$54,594 million in 2020 to US$40,523 million in 2024, with some fluctuations, particularly a dip in 2021 followed by slight recoveries.

Conversely, current liabilities exhibit a consistently upward trajectory, increasing from US$39,660 million in 2020 to US$64,771 million in 2024. This indicates rising short-term obligations over time.

The reported current ratio, a key measure of short-term liquidity, declines steadily from 1.38 in 2020 to 0.63 in 2024. This downward trend suggests a decreasing ability to cover current liabilities with current assets, pointing to potential liquidity stress or a more aggressive liability management policy.

When adjusted current assets are considered, a similar pattern emerges. Adjusted current assets decrease from US$55,846 million in 2020 to US$41,675 million in 2024, mirroring the trend in reported current assets but at slightly higher levels. The adjusted current ratio also falls over the period, from 1.41 in 2020 to 0.64 in 2024, confirming the decline in liquidity even after adjustments.

Current Assets

Decreased overall by approximately 25.8% from 2020 to 2024, with minor increases in intervening years.

Current Liabilities

Increased significantly by over 63% during the same period, suggesting growing short-term debts or obligations.

Reported Current Ratio

Declined from 1.38 to 0.63, indicating a shift from a liquid position to one where liabilities significantly exceed assets.

Adjusted Current Assets

Followed a similar declining pattern as reported current assets, decreasing by approximately 25.3%.

Adjusted Current Ratio

Fell from 1.41 to 0.64, reinforcing the trend of diminishing liquidity even after asset adjustments.

Overall, the data suggests a steady deterioration in short-term financial liquidity over the evaluated period. The growing gap between current liabilities and assets could imply increased financial risk, necessitating careful monitoring and potentially proactive liquidity management strategies to maintain operational stability.

The financial data reveals several notable trends in the company's capital structure over the five-year period analyzed. Total debt exhibited an increasing trend from 2020 to 2021, rising from approximately 129 billion US dollars to nearly 151 billion US dollars, followed by relative stability through 2023 before decreasing moderately to about 144 billion US dollars in 2024. Equity attributable to the company demonstrated a consistent upward trajectory throughout the entire period, growing from around 67.8 billion US dollars in 2020 to nearly 99.2 billion US dollars in 2024.

The reported debt to equity ratio decreased steadily over the years, moving from 1.9 in 2020 to 1.45 in 2024. This reflects a gradual reduction in financial leverage when considering reported figures, indicating an improvement in the company's equity base relative to its debt.

When considering adjusted figures, the total debt similarly increased sharply from 2020 to 2021, rising from about 150.5 billion US dollars to nearly 178 billion US dollars, then exhibited a gradual decline each subsequent year, reaching approximately 168.4 billion US dollars in 2024. Adjusted total equity also displayed continuous growth from approximately 106.1 billion US dollars in 2020 to about 148.3 billion US dollars in 2024.

The adjusted debt to equity ratio remained relatively stable between 2020 and 2021, at around 1.42 to 1.43, before gradually decreasing over the next three years to 1.14 in 2024. This trend suggests a sustained strengthening of the company's equity base relative to its adjusted debt obligations, supporting a more conservative financial structure.

In summary, the company has managed to reduce its leverage ratios steadily over the five-year period while simultaneously increasing its equity base. The reduction in both reported and adjusted debt to equity ratios indicates an improvement in the balance sheet's robustness. Although total and adjusted debt showed initial increases, the subsequent declines coupled with consistent equity growth suggest prudent financial management aimed at enhancing solvency and financial stability.

Debt Levels

Initial increase in total and adjusted debt from 2020 to 2021, followed by stabilization and moderate decline through 2024.

Equity Growth

Continuous and steady increase in both reported equity attributable and adjusted total equity over the entire period.

Leverage Ratios

Consistent decline in both reported and adjusted debt to equity ratios, indicating reduced financial leverage and stronger equity positions.

Financial Stability

Improved balance sheet metrics suggesting enhanced solvency and a more conservative capital structure in recent years.

The analysis of the financial metrics over the five-year period reveals several notable trends in the company's capital structure and leverage.

Total Debt

The total debt increased significantly from 129,062 million USD in 2020 to a peak of around 150,868 million USD in 2021. Thereafter, it slightly declined but remained relatively stable at approximately 150,639-150,674 million USD through 2022 and 2023, before decreasing to 144,014 million USD in 2024. This indicates a generally stable debt level with a modest reduction toward the end of the period.

Total Capital

Total capital followed a steady upward trend from 196,904 million USD in 2020 to 243,251 million USD in 2024. The increase was consistent each year, suggesting growth in the company’s overall capital base over time.

Reported Debt to Capital Ratio

This ratio gradually declined from 0.66 in 2020 to 0.59 in 2024. The consistent decrease reflects an improving leverage position when considering reported debt and capital, implying a strengthening equity base relative to reported debt obligations.

Adjusted Total Debt

Adjusted total debt exhibited a similar pattern to reported total debt, rising from 150,547 million USD in 2020 to 177,930 million USD in 2021. Subsequently, there was a gradual decrease yearly to 168,357 million USD by 2024. This adjusted figure remains higher than the reported debt, indicating adjustments have increased the recognized debt level.

Adjusted Total Capital

Adjusted total capital increased from 256,694 million USD in 2020 to 316,667 million USD in 2024. This steady growth over the period mirrors the total capital trend but occurs at a higher scale due to adjustments, signifying enhancements or recalculations in capital components.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declined from 0.59 in 2020 to 0.53 in 2024, illustrating a progressive reduction in leverage when considering adjusted figures. This trend, consistent with the reported ratio, indicates improved capital adequacy and potentially lower financial risk over time.

Overall, the company’s financial data depict a pattern of increasing capital with relatively stable and slightly declining debt levels. Both reported and adjusted leverage ratios have improved, signaling reduced leverage and potentially enhanced financial stability through the stated timeframe.

The analysis of the annual financial data reveals several noteworthy trends in the company's financial position between the end of 2020 and the projected data for the end of 2024.

Total Assets

Total assets have exhibited a consistent upward trajectory over the observed periods. Starting at 316,481 million US dollars in 2020, total assets increased steadily each year, reaching a projected 384,711 million US dollars by 2024. This growth indicates asset expansion, which may be reflective of investments, acquisitions, or capital expenditure.

Equity Attributable to Verizon

Equity attributable to the company has also shown a positive trend. It rose from 67,842 million US dollars in 2020 to an estimated 99,237 million US dollars by 2024. This increase in equity suggests improving net worth and potential retention of earnings or equity infusions over time.

Reported Financial Leverage

The reported financial leverage ratio has consistently declined from 4.66 in 2020 to a projected 3.88 in 2024. A decreasing leverage ratio implies the company is reducing its reliance on debt relative to equity, possibly improving its financial stability and risk profile.

Adjusted Total Assets

Adjusted total assets closely mirror the trend in reported total assets, increasing from 317,645 million US dollars in 2020 to 385,714 million US dollars forecasted for 2024. This small adjustment does not significantly change the overall asset growth picture, reinforcing the steady increase observed.

Adjusted Total Equity

Adjusted total equity shows a marked increase from 106,147 million US dollars in 2020 to 148,310 million US dollars in 2024. Notably, adjusted equity figures are substantially higher than reported equity, indicating that adjustments (possibly accounting or valuation assumptions) enhance the equity base, further underpinning financial strength.

Adjusted Financial Leverage

The adjusted financial leverage ratio demonstrates a declining pattern from 2.99 in 2020 to 2.60 projected in 2024. This trend aligns with the reported leverage but consistently shows a lower ratio, suggesting that when adjustments are considered, the company’s obligation relative to its equity is less pronounced, emphasizing a stronger equity position relative to total assets.

In summary, the financial data indicate that the company is steadily expanding its asset base and equity capital while effectively managing and reducing its financial leverage. The divergence between reported and adjusted equity and leverage ratios highlights the importance of adjustments that present a more favorable view of the company's financial leverage. The consistent reduction in leverage ratios, both reported and adjusted, points to an improving capital structure and potentially reduced financial risk over the analyzed period.

Net Income Attributable to Verizon

The net income shows variability over the periods analyzed. It increased from 17,801 million US dollars in 2020 to a peak of 22,065 million in 2021, followed by a slight decline to 21,256 million in 2022. In 2023, there was a marked decrease to 11,614 million, representing a significant contraction. The figure recovered somewhat in 2024, reaching 17,506 million, yet it remained below the earlier peak values.

Operating Revenues

Operating revenues demonstrated a generally upward trend from 128,292 million US dollars in 2020 to 136,835 million in 2022. However, revenues slightly decreased in 2023 to 133,974 million before recovering mildly in 2024 to 134,788 million. Overall, the revenue levels were relatively stable with modest fluctuations.

Reported Net Profit Margin

The reported net profit margin increased from 13.88% in 2020 to a high of 16.51% in 2021, before decreasing to 15.53% in 2022. A significant decline occurred in 2023, with the margin falling to 8.67%. Following this downturn, there was a partial recovery in 2024, with the margin improving to 12.99%, though it did not return to earlier peak levels.

Adjusted Net Income

Adjusted net income trends closely parallel those of net income but reflect higher values consistently. Starting at 19,351 million US dollars in 2020, it rose substantially to 25,670 million in 2021, then declined to 23,713 million in 2022. A notable drop was observed in 2023, falling to 15,159 million, with a rebound to 19,356 million in 2024, closely mirroring the net income recovery pattern.

Adjusted Net Profit Margin

Similar to the reported margin, the adjusted net profit margin increased from 15.08% in 2020 to 19.21% in 2021, then declined to 17.33% in 2022. A sharp reduction was noted in 2023, with the margin falling to 11.31%, followed by an improvement to 14.36% in 2024. This pattern suggests a consistent relationship with overall profitability, affected by adjustments but maintaining the same directional trends.

The analysis of the financial data reveals several notable trends concerning profitability, equity, and return on equity metrics over the five-year period.

Net Income Attributable to Verizon

The net income shows a general increase from 2020 through 2022, rising from $17,801 million to $21,256 million, followed by a sharp decline to $11,614 million in 2023. However, there is a significant recovery in 2024, with net income increasing again to $17,506 million.

Equity Attributable to Verizon

Equity exhibits a steady upward trend across the entire period, growing from $67,842 million in 2020 to $99,237 million in 2024. This indicates a consistent strengthening of the company’s equity base over time.

Reported Return on Equity (ROE)

Reported ROE follows an initial increase from 26.24% in 2020 to a peak of 26.98% in 2021, then declines notably to 23.32% in 2022. This downward trend continues with a sharp fall to 12.57% in 2023. There is a partial rebound to 17.64% in 2024, reflecting some recovery in profitability relative to reported equity.

Adjusted Net Income

Adjusted net income trends resemble those of reported net income, with an increase from $19,351 million in 2020 to $23,713 million in 2022, then a decline to $15,159 million in 2023. By 2024, it rises again to $19,356 million, indicating adjustments slightly smooth but do not eliminate the earnings volatility.

Adjusted Total Equity

Adjusted total equity consistently grows each year, increasing from $106,147 million in 2020 to $148,310 million in 2024. This suggests the company’s adjusted equity base has been expanding steadily, potentially reflecting retained earnings and other equity adjustments.

Adjusted ROE

The adjusted ROE declines from 18.23% in 2020 to 17.36% in 2022, followed by a more pronounced drop to 10.79% in 2023. In 2024, it recovers slightly to 13.05%. This pattern is similar to the reported ROE but at consistently lower levels, indicating that adjustments impact reported profitability measurement.

In summary, the data demonstrates a growth in equity both on reported and adjusted bases, while profitability and return on equity exhibit volatility with a peak around 2021 followed by a marked contraction in 2023 and partial recovery in 2024. The declines in ROE metrics coincide with reduced net income levels, despite expanding equity, suggesting challenges in maintaining profit generation efficiency relative to capital during the later years. Adjusted figures closely mirror reported results but reflect slightly more conservative profitability ratios.

The financial data reveals several key trends over the five-year period under review. Net income attributable to the company showed an overall increasing pattern from 2020 to 2021, rising from $17,801 million to $22,065 million. However, this was followed by a decline in 2022 and a significant drop in 2023, reaching a low of $11,614 million. The figure rebounded in 2024 to $17,506 million, though it did not fully recover to the peak in 2021.

Total assets exhibited steady growth each year, increasing from $316,481 million in 2020 to $384,711 million in 2024. This consistent rise indicates an expansion in the company's asset base throughout the period.

The reported Return on Assets (ROA) followed a pattern reflective of the net income changes. ROA started at 5.62% in 2020 and peaked at 6.02% in 2021 before dipping to 5.6% in 2022. There was a marked decline in 2023 to 3.05%, correlating with the dip in net income. In 2024, ROA improved to 4.55%, indicating partial recovery.

Adjusted net income similarly showed an increase from 2020 to 2021, rising from $19,351 million to $25,670 million. It declined in 2022 and more sharply in 2023, dropping to $15,159 million. The adjusted net income then increased again in 2024 to $19,356 million, aligning with the trend observed in reported net income.

Adjusted total assets mirrored the growth trajectory of total assets, expanding from $317,645 million in 2020 to $385,714 million in 2024. This steady increase is consistent across all years.

The adjusted ROA values showed higher percentages compared to the reported ROA in all years, indicating adjustments improved the reflected profitability measure. The adjusted ROA rose from 6.09% in 2020 to 6.99% in 2021, before declining to 6.23% in 2022. Similar to the reported ROA, adjusted ROA fell sharply in 2023 to 3.98%, with a subsequent rise to 5.02% in 2024.

Summary of trends:

Net income and adjusted net income demonstrated growth until 2021, followed by decline and partial recovery by 2024.

Total assets and adjusted total assets steadily increased over the entire period, showing ongoing asset growth.

ROA and adjusted ROA peaked in 2021, decreased substantially in 2023, and improved but did not fully recover in 2024.

The adjusted profitability measures (adjusted ROA) consistently exceeded the reported figures, suggesting favorable adjustments impacting income and asset evaluation.

Overall, the data indicates the company faced challenges affecting profitability primarily in 2023, while maintaining asset growth. The partial rebound in income and ROA in 2024 suggests some recovery efforts were effective but profitability levels remained below the peak year of 2021.