Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Verizon Communications Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 10.17% = 2.57% × 3.96
Jun 30, 2024 11.70% = 2.97% × 3.94
Mar 31, 2024 11.99% = 2.97% × 4.03
Dec 31, 2023 12.57% = 3.05% × 4.11
Sep 30, 2023 21.38% = 5.43% × 3.94
Jun 30, 2023 22.10% = 5.54% × 3.99
Mar 31, 2023 23.24% = 5.71% × 4.07
Dec 31, 2022 23.32% = 5.60% × 4.17
Sep 30, 2022 22.06% = 5.14% × 4.29
Jun 30, 2022 24.18% = 5.62% × 4.30
Mar 31, 2022 25.55% = 5.85% × 4.37
Dec 31, 2021 26.98% = 6.02% × 4.48
Sep 30, 2021 28.61% = 6.24% × 4.59
Jun 30, 2021 27.13% = 5.72% × 4.74
Mar 31, 2021 26.52% = 5.47% × 4.85
Dec 31, 2020 26.24% = 5.62% × 4.66
Sep 30, 2020 28.14% = 6.16% × 4.56
Jun 30, 2020 30.54% = 6.53% × 4.68
Mar 31, 2020 30.54% = 6.24% × 4.89
Dec 31, 2019 31.38% = 6.60% × 4.75
Sep 30, 2019 — = — × 4.83
Jun 30, 2019 — = — × 5.00
Mar 31, 2019 — = — × 5.08

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Verizon Communications Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 10.17% = 7.30% × 0.35 × 3.96
Jun 30, 2024 11.70% = 8.38% × 0.35 × 3.94
Mar 31, 2024 11.99% = 8.44% × 0.35 × 4.03
Dec 31, 2023 12.57% = 8.67% × 0.35 × 4.11
Sep 30, 2023 21.38% = 15.58% × 0.35 × 3.94
Jun 30, 2023 22.10% = 15.58% × 0.36 × 3.99
Mar 31, 2023 23.24% = 15.85% × 0.36 × 4.07
Dec 31, 2022 23.32% = 15.53% × 0.36 × 4.17
Sep 30, 2022 22.06% = 14.22% × 0.36 × 4.29
Jun 30, 2022 24.18% = 15.48% × 0.36 × 4.30
Mar 31, 2022 25.55% = 15.93% × 0.37 × 4.37
Dec 31, 2021 26.98% = 16.51% × 0.36 × 4.48
Sep 30, 2021 28.61% = 16.42% × 0.38 × 4.59
Jun 30, 2021 27.13% = 15.05% × 0.38 × 4.74
Mar 31, 2021 26.52% = 14.58% × 0.37 × 4.85
Dec 31, 2020 26.24% = 13.88% × 0.41 × 4.66
Sep 30, 2020 28.14% = 14.26% × 0.43 × 4.56
Jun 30, 2020 30.54% = 14.76% × 0.44 × 4.68
Mar 31, 2020 30.54% = 14.00% × 0.45 × 4.89
Dec 31, 2019 31.38% = 14.61% × 0.45 × 4.75
Sep 30, 2019 — = — × — × 4.83
Jun 30, 2019 — = — × — × 5.00
Mar 31, 2019 — = — × — × 5.08

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Verizon Communications Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 10.17% = 0.69 × 0.68 × 15.44% × 0.35 × 3.96
Jun 30, 2024 11.70% = 0.70 × 0.72 × 16.66% × 0.35 × 3.94
Mar 31, 2024 11.99% = 0.70 × 0.73 × 16.43% × 0.35 × 4.03
Dec 31, 2023 12.57% = 0.70 × 0.75 × 16.44% × 0.35 × 4.11
Sep 30, 2023 21.38% = 0.77 × 0.84 × 23.99% × 0.35 × 3.94
Jun 30, 2023 22.10% = 0.77 × 0.86 × 23.71% × 0.36 × 3.99
Mar 31, 2023 23.24% = 0.76 × 0.87 × 23.68% × 0.36 × 4.07
Dec 31, 2022 23.32% = 0.77 × 0.88 × 22.94% × 0.36 × 4.17
Sep 30, 2022 22.06% = 0.77 × 0.89 × 20.90% × 0.36 × 4.29
Jun 30, 2022 24.18% = 0.77 × 0.90 × 22.37% × 0.36 × 4.30
Mar 31, 2022 25.55% = 0.77 × 0.90 × 23.12% × 0.37 × 4.37
Dec 31, 2021 26.98% = 0.76 × 0.89 × 24.21% × 0.36 × 4.48
Sep 30, 2021 28.61% = 0.76 × 0.88 × 24.43% × 0.38 × 4.59
Jun 30, 2021 27.13% = 0.76 × 0.87 × 22.97% × 0.38 × 4.74
Mar 31, 2021 26.52% = 0.76 × 0.85 × 22.49% × 0.37 × 4.85
Dec 31, 2020 26.24% = 0.76 × 0.85 × 21.57% × 0.41 × 4.66
Sep 30, 2020 28.14% = 0.88 × 0.83 × 19.64% × 0.43 × 4.56
Jun 30, 2020 30.54% = 0.87 × 0.83 × 20.34% × 0.44 × 4.68
Mar 31, 2020 30.54% = 0.87 × 0.82 × 19.53% × 0.45 × 4.89
Dec 31, 2019 31.38% = 0.87 × 0.82 × 20.43% × 0.45 × 4.75
Sep 30, 2019 — = — × — × — × — × 4.83
Jun 30, 2019 — = — × — × — × — × 5.00
Mar 31, 2019 — = — × — × — × — × 5.08

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Verizon Communications Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 2.57% = 7.30% × 0.35
Jun 30, 2024 2.97% = 8.38% × 0.35
Mar 31, 2024 2.97% = 8.44% × 0.35
Dec 31, 2023 3.05% = 8.67% × 0.35
Sep 30, 2023 5.43% = 15.58% × 0.35
Jun 30, 2023 5.54% = 15.58% × 0.36
Mar 31, 2023 5.71% = 15.85% × 0.36
Dec 31, 2022 5.60% = 15.53% × 0.36
Sep 30, 2022 5.14% = 14.22% × 0.36
Jun 30, 2022 5.62% = 15.48% × 0.36
Mar 31, 2022 5.85% = 15.93% × 0.37
Dec 31, 2021 6.02% = 16.51% × 0.36
Sep 30, 2021 6.24% = 16.42% × 0.38
Jun 30, 2021 5.72% = 15.05% × 0.38
Mar 31, 2021 5.47% = 14.58% × 0.37
Dec 31, 2020 5.62% = 13.88% × 0.41
Sep 30, 2020 6.16% = 14.26% × 0.43
Jun 30, 2020 6.53% = 14.76% × 0.44
Mar 31, 2020 6.24% = 14.00% × 0.45
Dec 31, 2019 6.60% = 14.61% × 0.45
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Verizon Communications Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 2.57% = 0.69 × 0.68 × 15.44% × 0.35
Jun 30, 2024 2.97% = 0.70 × 0.72 × 16.66% × 0.35
Mar 31, 2024 2.97% = 0.70 × 0.73 × 16.43% × 0.35
Dec 31, 2023 3.05% = 0.70 × 0.75 × 16.44% × 0.35
Sep 30, 2023 5.43% = 0.77 × 0.84 × 23.99% × 0.35
Jun 30, 2023 5.54% = 0.77 × 0.86 × 23.71% × 0.36
Mar 31, 2023 5.71% = 0.76 × 0.87 × 23.68% × 0.36
Dec 31, 2022 5.60% = 0.77 × 0.88 × 22.94% × 0.36
Sep 30, 2022 5.14% = 0.77 × 0.89 × 20.90% × 0.36
Jun 30, 2022 5.62% = 0.77 × 0.90 × 22.37% × 0.36
Mar 31, 2022 5.85% = 0.77 × 0.90 × 23.12% × 0.37
Dec 31, 2021 6.02% = 0.76 × 0.89 × 24.21% × 0.36
Sep 30, 2021 6.24% = 0.76 × 0.88 × 24.43% × 0.38
Jun 30, 2021 5.72% = 0.76 × 0.87 × 22.97% × 0.38
Mar 31, 2021 5.47% = 0.76 × 0.85 × 22.49% × 0.37
Dec 31, 2020 5.62% = 0.76 × 0.85 × 21.57% × 0.41
Sep 30, 2020 6.16% = 0.88 × 0.83 × 19.64% × 0.43
Jun 30, 2020 6.53% = 0.87 × 0.83 × 20.34% × 0.44
Mar 31, 2020 6.24% = 0.87 × 0.82 × 19.53% × 0.45
Dec 31, 2019 6.60% = 0.87 × 0.82 × 20.43% × 0.45
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Verizon Communications Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 7.30% = 0.69 × 0.68 × 15.44%
Jun 30, 2024 8.38% = 0.70 × 0.72 × 16.66%
Mar 31, 2024 8.44% = 0.70 × 0.73 × 16.43%
Dec 31, 2023 8.67% = 0.70 × 0.75 × 16.44%
Sep 30, 2023 15.58% = 0.77 × 0.84 × 23.99%
Jun 30, 2023 15.58% = 0.77 × 0.86 × 23.71%
Mar 31, 2023 15.85% = 0.76 × 0.87 × 23.68%
Dec 31, 2022 15.53% = 0.77 × 0.88 × 22.94%
Sep 30, 2022 14.22% = 0.77 × 0.89 × 20.90%
Jun 30, 2022 15.48% = 0.77 × 0.90 × 22.37%
Mar 31, 2022 15.93% = 0.77 × 0.90 × 23.12%
Dec 31, 2021 16.51% = 0.76 × 0.89 × 24.21%
Sep 30, 2021 16.42% = 0.76 × 0.88 × 24.43%
Jun 30, 2021 15.05% = 0.76 × 0.87 × 22.97%
Mar 31, 2021 14.58% = 0.76 × 0.85 × 22.49%
Dec 31, 2020 13.88% = 0.76 × 0.85 × 21.57%
Sep 30, 2020 14.26% = 0.88 × 0.83 × 19.64%
Jun 30, 2020 14.76% = 0.87 × 0.83 × 20.34%
Mar 31, 2020 14.00% = 0.87 × 0.82 × 19.53%
Dec 31, 2019 14.61% = 0.87 × 0.82 × 20.43%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q3 2024 is the decrease in operating profitability measured by EBIT margin ratio.