Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Verizon Communications Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Verizon Communications Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Verizon Communications Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Verizon Communications Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Verizon Communications Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Verizon Communications Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Verizon Communications Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Verizon Communications Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Verizon Communications Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Verizon Communications Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Verizon Communications Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.63 | 1.65 | 1.84 | 1.90 | 1.82 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AT&T Inc. | 1.33 | 1.39 | 1.07 | 0.97 | 0.89 | |
| T-Mobile US Inc. | 1.20 | 1.07 | 1.11 | 1.13 | 0.95 | |
| Debt to Equity, Sector | ||||||
| Telecommunication Services | 1.40 | 1.40 | 1.28 | 1.22 | 1.10 | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.62 | 0.65 | 0.65 | 0.67 | 0.62 | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to Verizon
= 150,674 ÷ 92,430 = 1.63
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Verizon Communications Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Verizon Communications Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Current operating lease liabilities | 4,266) | 4,134) | 3,859) | 3,485) | 3,261) | |
| Non-current operating lease liabilities | 20,002) | 21,558) | 23,203) | 18,000) | 18,393) | |
| Total debt (including operating lease liability) | 174,942) | 176,331) | 177,930) | 150,547) | 133,143) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.89 | 1.93 | 2.18 | 2.22 | 2.17 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 1.53 | 1.62 | 1.22 | 1.13 | 1.02 | |
| T-Mobile US Inc. | 1.69 | 1.55 | 1.53 | 1.59 | 1.39 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 1.70 | 1.71 | 1.53 | 1.48 | 1.32 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.76 | 0.80 | 0.79 | 0.80 | 0.74 | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Verizon
= 174,942 ÷ 92,430 = 1.89
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Verizon Communications Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Verizon Communications Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Total capital | 243,104) | 241,783) | 232,658) | 196,904) | 172,884) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.62 | 0.62 | 0.65 | 0.66 | 0.64 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AT&T Inc. | 0.57 | 0.58 | 0.52 | 0.49 | 0.47 | |
| T-Mobile US Inc. | 0.54 | 0.52 | 0.53 | 0.53 | 0.49 | |
| Debt to Capital, Sector | ||||||
| Telecommunication Services | 0.58 | 0.58 | 0.56 | 0.55 | 0.52 | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.38 | 0.39 | 0.40 | 0.40 | 0.38 | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 150,674 ÷ 243,104 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Verizon Communications Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Verizon Communications Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Current operating lease liabilities | 4,266) | 4,134) | 3,859) | 3,485) | 3,261) | |
| Non-current operating lease liabilities | 20,002) | 21,558) | 23,203) | 18,000) | 18,393) | |
| Total debt (including operating lease liability) | 174,942) | 176,331) | 177,930) | 150,547) | 133,143) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Total capital (including operating lease liability) | 267,372) | 267,475) | 259,720) | 218,389) | 194,538) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.65 | 0.66 | 0.69 | 0.69 | 0.68 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 0.61 | 0.62 | 0.55 | 0.53 | 0.51 | |
| T-Mobile US Inc. | 0.63 | 0.61 | 0.61 | 0.61 | 0.58 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 0.63 | 0.63 | 0.61 | 0.60 | 0.57 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 174,942 ÷ 267,372 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Verizon Communications Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Verizon Communications Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Total assets | 380,255) | 379,680) | 366,596) | 316,481) | 291,727) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.40 | 0.40 | 0.41 | 0.41 | 0.38 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AT&T Inc. | 0.34 | 0.34 | 0.32 | 0.30 | 0.30 | |
| T-Mobile US Inc. | 0.37 | 0.35 | 0.37 | 0.37 | 0.31 | |
| Debt to Assets, Sector | ||||||
| Telecommunication Services | 0.37 | 0.36 | 0.36 | 0.35 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 150,674 ÷ 380,255 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Verizon Communications Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Verizon Communications Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Debt maturing within one year | 12,973) | 9,963) | 7,443) | 5,889) | 10,777) | |
| Long-term debt, excluding maturing within one year | 137,701) | 140,676) | 143,425) | 123,173) | 100,712) | |
| Total debt | 150,674) | 150,639) | 150,868) | 129,062) | 111,489) | |
| Current operating lease liabilities | 4,266) | 4,134) | 3,859) | 3,485) | 3,261) | |
| Non-current operating lease liabilities | 20,002) | 21,558) | 23,203) | 18,000) | 18,393) | |
| Total debt (including operating lease liability) | 174,942) | 176,331) | 177,930) | 150,547) | 133,143) | |
| Total assets | 380,255) | 379,680) | 366,596) | 316,481) | 291,727) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.46 | 0.46 | 0.49 | 0.48 | 0.46 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AT&T Inc. | 0.39 | 0.39 | 0.37 | 0.35 | 0.34 | |
| T-Mobile US Inc. | 0.53 | 0.51 | 0.51 | 0.52 | 0.46 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Telecommunication Services | 0.44 | 0.45 | 0.43 | 0.42 | 0.39 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.32 | 0.33 | 0.33 | 0.33 | 0.31 | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 174,942 ÷ 380,255 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Verizon Communications Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Verizon Communications Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 380,255) | 379,680) | 366,596) | 316,481) | 291,727) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 4.11 | 4.17 | 4.48 | 4.66 | 4.75 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AT&T Inc. | 3.94 | 4.13 | 3.32 | 3.25 | 2.99 | |
| T-Mobile US Inc. | 3.21 | 3.03 | 2.99 | 3.06 | 3.02 | |
| Financial Leverage, Sector | ||||||
| Telecommunication Services | 3.82 | 3.85 | 3.55 | 3.54 | 3.39 | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.39 | 2.45 | 2.43 | 2.45 | 2.42 | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to Verizon
= 380,255 ÷ 92,430 = 4.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Verizon Communications Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Verizon Communications Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Verizon | 11,614) | 21,256) | 22,065) | 17,801) | 19,265) | |
| Add: Net income attributable to noncontrolling interest | 481) | 492) | 553) | 547) | 523) | |
| Add: Income tax expense | 4,892) | 6,523) | 6,802) | 5,619) | 2,945) | |
| Add: Interest expense | 5,524) | 3,613) | 3,485) | 4,247) | 4,730) | |
| Earnings before interest and tax (EBIT) | 22,511) | 31,884) | 32,905) | 28,214) | 27,463) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.08 | 8.82 | 9.44 | 6.64 | 5.81 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AT&T Inc. | 3.96 | 0.49 | 4.91 | 0.64 | 3.19 | |
| T-Mobile US Inc. | 4.30 | 1.94 | 2.00 | 2.31 | 5.14 | |
| Interest Coverage, Sector | ||||||
| Telecommunication Services | 4.07 | 3.16 | 5.36 | 2.66 | 4.21 | |
| Interest Coverage, Industry | ||||||
| Communication Services | 10.21 | 8.50 | 11.90 | 6.51 | 7.88 | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 22,511 ÷ 5,524 = 4.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Verizon Communications Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Verizon Communications Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Verizon | 11,614) | 21,256) | 22,065) | 17,801) | 19,265) | |
| Add: Net income attributable to noncontrolling interest | 481) | 492) | 553) | 547) | 523) | |
| Add: Income tax expense | 4,892) | 6,523) | 6,802) | 5,619) | 2,945) | |
| Add: Interest expense | 5,524) | 3,613) | 3,485) | 4,247) | 4,730) | |
| Earnings before interest and tax (EBIT) | 22,511) | 31,884) | 32,905) | 28,214) | 27,463) | |
| Add: Operating lease cost | 5,432) | 5,345) | 5,248) | 5,016) | 4,746) | |
| Earnings before fixed charges and tax | 27,943) | 37,229) | 38,153) | 33,230) | 32,209) | |
| Interest expense | 5,524) | 3,613) | 3,485) | 4,247) | 4,730) | |
| Operating lease cost | 5,432) | 5,345) | 5,248) | 5,016) | 4,746) | |
| Fixed charges | 10,956) | 8,958) | 8,733) | 9,263) | 9,476) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.55 | 4.16 | 4.37 | 3.59 | 3.40 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AT&T Inc. | 2.56 | 0.72 | 3.06 | 0.78 | 2.31 | |
| T-Mobile US Inc. | 2.32 | 1.32 | 1.36 | 1.49 | 2.25 | |
| Fixed Charge Coverage, Sector | ||||||
| Telecommunication Services | 2.49 | 1.92 | 2.92 | 1.80 | 2.68 | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 5.36 | 4.25 | 5.95 | 3.73 | 4.58 | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 27,943 ÷ 10,956 = 2.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Verizon Communications Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |