Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
- Debt to Equity Ratios
- The standard debt to equity ratio shows a gradual decline over the observed periods, decreasing from 2.23 at the beginning to 1.40 in the final quarter. This indicates a progressive reduction in financial leverage relative to shareholders' equity. When including operating lease liabilities, the ratio follows a similar downward trend, falling from 2.52 to 1.62. The decrease suggests ongoing efforts to manage and possibly diminish overall debt obligations.
- Debt to Capital Ratios
- Debt to capital ratios consistently decline throughout the timeframe. The ratio without lease liabilities moves down from 0.69 to 0.58, while the version including operating lease liabilities drops from 0.72 to 0.62. This pattern reflects a strengthening capital structure, with a lower proportion of debt compared to the total capital base.
- Debt to Assets Ratios
- Debt relative to total assets also decreases over time. The ratio excluding lease liabilities decreases from 0.46 to 0.38, and the inclusive ratio follows from 0.52 to 0.44. This trend indicates improved asset coverage against debt and a moderate reduction in leverage measured against asset size.
- Financial Leverage
- Financial leverage shows a steady decline from 4.85 to 3.70, reflecting reduced reliance on debt to finance the assets owned by the company. Notably, after a brief increase towards the end of 2022, the downward trend resumes, which may correspond to changes in equity or debt levels during these quarters.
- Interest Coverage Ratio
- The interest coverage ratio exhibits variability; it rises initially from 6.88 to a peak of 9.97, indicating strong capacity to cover interest expenses. Subsequently, the ratio declines sharply to a low of 3.21, signaling reduced earnings relative to interest obligations. Toward the end of the period, the ratio begins to recover, rising to 4.98. This fluctuation suggests periods of changing operational income or interest expense levels, impacting the ability to service debt.
Debt Ratios
Coverage Ratios
Debt to Equity
Verizon Communications Inc., debt to equity calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Equity attributable to Verizon | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 1.40 | 1.42 | 1.43 | 1.45 | 1.56 | 1.55 | 1.61 | 1.63 | 1.51 | 1.60 | 1.65 | 1.65 | 1.69 | 1.73 | 1.83 | 1.84 | 1.96 | 2.06 | 2.23 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 1.26 | 1.26 | 1.22 | 1.18 | 1.26 | 1.24 | 1.27 | 1.33 | 1.33 | 1.41 | 1.38 | 1.39 | 1.09 | 1.15 | 1.23 | 1.07 | 1.09 | 1.11 | 1.09 | ||||||
| T-Mobile US Inc. | 1.43 | 1.40 | 1.44 | 1.31 | 1.28 | 1.28 | 1.30 | 1.20 | 1.20 | 1.22 | 1.15 | 1.07 | 1.09 | 1.05 | 1.07 | 1.11 | 1.10 | 1.15 | 1.17 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Equity attributable to Verizon
= 146,775 ÷ 105,042 = 1.40
2 Click competitor name to see calculations.
The financial data for the subject entity over multiple quarters reveals key trends in debt levels, equity, and solvency risk as measured by the debt to equity ratio.
- Total Debt
- Total debt demonstrated an overall moderate decline with some fluctuations over the observed period. Starting at approximately $158.5 billion, total debt decreased steadily through 2021, reaching a low near $147.9 billion by the end of Q3 2022. However, subsequent quarters exhibited variability with debt levels rising and falling slightly, ending at approximately $146.8 billion in Q3 2025. This pattern suggests active debt management with efforts to reduce leverage, though with some reinvestment or financing activities causing short-term increases.
- Equity Attributable to Verizon
- Equity showed a consistent upward trend throughout most of the timeline, increasing from around $71.2 billion at the beginning to over $105 billion by the latest quarter. This steady growth in equity reflects ongoing accumulation of retained earnings, capital appreciation, or equity financing. The rise in equity was particularly strong during the 2021 and 2022 periods, though there were some quarters such as Q4 2023 where equity levels dipped slightly before resuming growth again. This trend indicates strengthening of the company’s net asset base and potential improvements in shareholder value.
- Debt to Equity Ratio
- The debt to equity ratio steadily decreased from above 2.2 in early 2021 to approximately 1.4 by Q3 2025. This reduction aligns with the dual trend of decreasing debt and increasing equity, signaling an improvement in financial leverage and capital structure. A lower ratio suggests reduced financial risk and potentially lower interest burden, which could enhance creditworthiness. Though minor upticks occurred in several quarters, the prevailing pattern was a gradual deleveraging over the observed periods.
In summary, the company exhibited a favorable financial trajectory characterized by declining debt levels combined with rising equity, leading to a significant improvement in the debt to equity ratio over the analyzed period. These trends indicate prudent financial management aimed at lowering leverage and enhancing the balance sheet strength.
Debt to Equity (including Operating Lease Liability)
Verizon Communications Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Current operating lease liabilities | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | 3,859) | 3,606) | 3,881) | 3,536) | ||||||
| Non-current operating lease liabilities | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | 23,203) | 23,507) | 23,360) | 17,766) | ||||||
| Total debt (including operating lease liability) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | 177,930) | 178,088) | 179,158) | 179,804) | ||||||
| Equity attributable to Verizon | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.62 | 1.65 | 1.67 | 1.70 | 1.81 | 1.80 | 1.86 | 1.89 | 1.76 | 1.87 | 1.92 | 1.93 | 1.99 | 2.04 | 2.15 | 2.18 | 2.31 | 2.43 | 2.52 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 1.43 | 1.43 | 1.38 | 1.35 | 1.43 | 1.40 | 1.44 | 1.50 | 1.50 | 1.59 | 1.57 | 1.59 | 1.24 | 1.31 | 1.35 | 1.19 | 1.23 | 1.24 | 1.22 | ||||||
| T-Mobile US Inc. | 1.93 | 1.87 | 1.92 | 1.79 | 1.75 | 1.76 | 1.80 | 1.69 | 1.70 | 1.71 | 1.64 | 1.55 | 1.57 | 1.54 | 1.56 | 1.53 | 1.53 | 1.60 | 1.63 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to Verizon
= 170,452 ÷ 105,042 = 1.62
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning debt, equity, and leverage ratios over the analyzed periods.
- Total Debt (including operating lease liability)
-
Total debt levels have exhibited a slight overall decline from approximately $179.8 billion at the beginning of 2021 to about $170.5 billion by the third quarter of 2025. The debt figures show minor fluctuations quarter-to-quarter but generally have a downward trend, indicating a gradual reduction in total debt over the period. This suggests an ongoing effort to manage and possibly deleverage the company’s financial obligations.
- Equity Attributable to Verizon
-
Equity has steadily increased throughout the period, growing from roughly $71.2 billion in the first quarter of 2021 to over $105 billion by the third quarter of 2025. This consistent equity growth points to increasing retained earnings or other equity inflows, strengthening the company’s net asset position and potentially enhancing its financial stability and capacity for investment.
- Debt to Equity Ratio (including operating lease liability)
-
The debt to equity ratio has shown a clear declining trend, moving from 2.52 at the start of 2021 down to approximately 1.62 by the latest quarter of 2025. This steady decrease in leverage suggests improved financial health, as the company is reducing its reliance on debt relative to its equity base. Lower leverage ratios typically indicate lower financial risk and potentially improved creditworthiness.
In summary, the data reflects a favorable development pattern characterized by moderated total debt, robust equity growth, and a significant reduction in financial leverage over the examined timeframe. These trends collectively point to enhanced financial resilience and a strategic focus on strengthening the balance sheet.
Debt to Capital
Verizon Communications Inc., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Equity attributable to Verizon | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Total capital | 251,817) | 249,059) | 244,371) | 243,251) | 246,967) | 245,449) | 246,032) | 243,104) | 245,132) | 247,891) | 245,736) | 241,783) | 235,375) | 235,073) | 237,144) | 232,658) | 228,019) | 225,601) | 229,734) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.58 | 0.59 | 0.59 | 0.59 | 0.61 | 0.61 | 0.62 | 0.62 | 0.60 | 0.62 | 0.62 | 0.62 | 0.63 | 0.63 | 0.65 | 0.65 | 0.66 | 0.67 | 0.69 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 0.56 | 0.56 | 0.55 | 0.54 | 0.56 | 0.55 | 0.56 | 0.57 | 0.57 | 0.58 | 0.58 | 0.58 | 0.52 | 0.54 | 0.55 | 0.52 | 0.52 | 0.53 | 0.52 | ||||||
| T-Mobile US Inc. | 0.59 | 0.58 | 0.59 | 0.57 | 0.56 | 0.56 | 0.57 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | 0.52 | 0.51 | 0.52 | 0.53 | 0.52 | 0.54 | 0.54 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 146,775 ÷ 251,817 = 0.58
2 Click competitor name to see calculations.
The data reflects the financial position over multiple quarters with respect to total debt, total capital, and the debt-to-capital ratio.
- Total Debt
- Total debt fluctuates within a relatively narrow range over the examined periods, generally maintaining levels between approximately 144 billion and 158 billion US dollars. The debt peaked at about 158.5 billion in early 2021, then exhibited a gradual declining trend through 2022 and 2023, reaching a low near 144 billion in late 2024. A slight increase occurred again towards early 2025, ending near 147 billion. Overall, the movement points to strategic debt management, maintaining stable leverage without large increases or rapid reductions.
- Total Capital
- Total capital shows a consistent upward trend across the observed quarters, rising from approximately 229.7 billion US dollars in early 2021 to about 251.8 billion by the first quarter of 2025. The increase is steady and incremental, with minor short-term fluctuations. This expansion indicates growth in the company's capital base, potentially from retained earnings, equity raises, or lower debt proportions relative to total financing.
- Debt-to-Capital Ratio
- The debt-to-capital ratio steadily declines from 0.69 at the beginning of 2021 to 0.58 by early 2025. This consistent decrease illustrates a gradual reduction in reliance on debt as a proportion of total capital. The diminishing ratio suggests an improving capitalization structure, with the company favoring more equity or internal financing sources relative to debt over time. The downward trajectory indicates strengthening financial stability and potentially lower financial risk.
In summary, the company exhibits disciplined financial management by maintaining controlled debt levels while steadily growing total capital, which results in a progressive decline in leverage. This pattern signals improved capital structure health and possibly enhanced creditworthiness over the reported periods.
Debt to Capital (including Operating Lease Liability)
Verizon Communications Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Current operating lease liabilities | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | 3,859) | 3,606) | 3,881) | 3,536) | ||||||
| Non-current operating lease liabilities | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | 23,203) | 23,507) | 23,360) | 17,766) | ||||||
| Total debt (including operating lease liability) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | 177,930) | 178,088) | 179,158) | 179,804) | ||||||
| Equity attributable to Verizon | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Total capital (including operating lease liability) | 275,494) | 272,954) | 268,436) | 267,594) | 270,526) | 269,152) | 269,968) | 267,372) | 269,811) | 272,847) | 271,216) | 267,475) | 261,511) | 261,582) | 263,923) | 259,720) | 255,132) | 252,842) | 251,036) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.62 | 0.62 | 0.62 | 0.63 | 0.64 | 0.64 | 0.65 | 0.65 | 0.64 | 0.65 | 0.66 | 0.66 | 0.67 | 0.67 | 0.68 | 0.69 | 0.70 | 0.71 | 0.72 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 0.59 | 0.59 | 0.58 | 0.57 | 0.59 | 0.58 | 0.59 | 0.60 | 0.60 | 0.61 | 0.61 | 0.61 | 0.55 | 0.57 | 0.57 | 0.54 | 0.55 | 0.55 | 0.55 | ||||||
| T-Mobile US Inc. | 0.66 | 0.65 | 0.66 | 0.64 | 0.64 | 0.64 | 0.64 | 0.63 | 0.63 | 0.63 | 0.62 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.60 | 0.62 | 0.62 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 170,452 ÷ 275,494 = 0.62
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt figures exhibit a gradual decline from March 2021 through September 2025. Starting at approximately 179.8 billion USD in March 2021, the debt shows minor fluctuations but generally trends downward, reaching around 170.5 billion USD by September 2025. This indicates a modest reduction in leverage over the observed period.
- Total Capital (including operating lease liability)
- Total capital values display a steady upward trend throughout the period. Beginning at approximately 251.0 billion USD in March 2021, total capital rises consistently with slight variability, reaching about 275.5 billion USD by September 2025. This increase suggests growth in the company’s overall financing base.
- Debt to Capital Ratio (including operating lease liability)
- The ratio of debt to capital shows a clear downward trend, moving from 0.72 in March 2021 to 0.62 by September 2025. This reduction in leverage ratio reflects an improving capital structure, with debt representing a decreasing proportion of total capital over time. The decline is steady with no significant reversals, indicating disciplined debt management relative to capital growth.
Overall, the financial data reveals a positive trajectory in financial stability. The consistent decrease in total debt combined with the steady increase in total capital results in a significant improvement in the debt-to-capital ratio. This pattern suggests the company is effectively managing its capital structure by reducing reliance on debt financing, which may potentially enhance creditworthiness and financial flexibility in the long term.
Debt to Assets
Verizon Communications Inc., debt to assets calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Total assets | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | 366,596) | 353,457) | 349,190) | 345,573) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.38 | 0.38 | 0.38 | 0.37 | 0.40 | 0.39 | 0.40 | 0.40 | 0.38 | 0.40 | 0.40 | 0.40 | 0.39 | 0.40 | 0.42 | 0.41 | 0.43 | 0.44 | 0.46 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 0.33 | 0.33 | 0.32 | 0.31 | 0.33 | 0.33 | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | 0.34 | 0.31 | 0.32 | 0.36 | 0.32 | 0.33 | 0.33 | 0.33 | ||||||
| T-Mobile US Inc. | 0.40 | 0.40 | 0.41 | 0.39 | 0.39 | 0.38 | 0.39 | 0.37 | 0.37 | 0.38 | 0.37 | 0.35 | 0.36 | 0.35 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 146,775 ÷ 388,331 = 0.38
2 Click competitor name to see calculations.
- Total Debt
-
Total debt exhibited a generally decreasing trend from March 2021 to September 2022, dropping from approximately $158.5 billion to $147.9 billion. This decline suggests a reduction in leverage or repayment of liabilities during this period. However, from September 2022 to December 2023, total debt fluctuated around the $150 billion mark, indicating some variability but overall stability. From December 2023 through September 2025, total debt showed a mild downward trend again, reaching approximately $146.8 billion by September 2025. These movements reflect periodic debt management activities and possibly refinancing efforts aimed at optimizing the capital structure. Overall, total debt levels remain relatively stable with minor fluctuations around the $145 billion to $153 billion range in the later periods.
- Total Assets
-
Total assets demonstrated a consistent upward trajectory over the entire timeframe. From $345.6 billion in March 2021, assets gradually increased, peaking near $384.7 billion in December 2024. This growth indicates ongoing investment in assets, potential business expansion, or valuation increases. Although there is some minor fluctuation in 2023, with a slight dip in December 2023, overall assets maintained a growth trend, reaching a high of $388.3 billion by September 2025. The continual increase in asset base suggests strengthening capitalization and possibly enhanced operational capacity.
- Debt to Assets Ratio
-
The debt to assets ratio has experienced a moderate decline from 0.46 in March 2021 to around 0.38 in the latest periods of 2025. This reduction reflects that total debt has decreased or remained stable while total assets have grown. During 2021, the ratio steadily dropped from 0.46 to 0.41, indicating improved financial leverage. Between 2022 and 2023, the ratio demonstrated slight oscillations primarily around 0.39 to 0.4, followed by a more consistent decline throughout 2024 and 2025, settling near 0.38. This trend signals a strengthening balance sheet with relatively less reliance on debt financing compared to assets, implying a positive movement towards lower leverage risk.
Debt to Assets (including Operating Lease Liability)
Verizon Communications Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Debt maturing within one year | 20,146) | 22,067) | 22,629) | 22,633) | 21,763) | 23,255) | 15,594) | 12,973) | 12,950) | 14,827) | 12,081) | 9,963) | 14,995) | 12,873) | 13,421) | 7,443) | 7,623) | 7,023) | 8,802) | ||||||
| Long-term debt, excluding maturing within one year | 126,629) | 123,929) | 121,020) | 121,381) | 128,878) | 126,022) | 136,104) | 137,701) | 134,441) | 137,871) | 140,772) | 140,676) | 132,912) | 136,184) | 139,961) | 143,425) | 143,352) | 144,894) | 149,700) | ||||||
| Total debt | 146,775) | 145,996) | 143,649) | 144,014) | 150,641) | 149,277) | 151,698) | 150,674) | 147,391) | 152,698) | 152,853) | 150,639) | 147,907) | 149,057) | 153,382) | 150,868) | 150,975) | 151,917) | 158,502) | ||||||
| Current operating lease liabilities | 4,501) | 4,731) | 4,686) | 4,415) | 4,312) | 4,247) | 4,282) | 4,266) | 3,906) | 4,211) | 4,177) | 4,134) | 3,961) | 3,912) | 3,847) | 3,859) | 3,606) | 3,881) | 3,536) | ||||||
| Non-current operating lease liabilities | 19,176) | 19,164) | 19,379) | 19,928) | 19,247) | 19,456) | 19,654) | 20,002) | 20,773) | 20,745) | 21,303) | 21,558) | 22,175) | 22,597) | 22,932) | 23,203) | 23,507) | 23,360) | 17,766) | ||||||
| Total debt (including operating lease liability) | 170,452) | 169,891) | 167,714) | 168,357) | 174,200) | 172,980) | 175,634) | 174,942) | 172,070) | 177,654) | 178,333) | 176,331) | 174,043) | 175,566) | 180,161) | 177,930) | 178,088) | 179,158) | 179,804) | ||||||
| Total assets | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | 366,596) | 353,457) | 349,190) | 345,573) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.44 | 0.44 | 0.44 | 0.44 | 0.46 | 0.46 | 0.46 | 0.46 | 0.45 | 0.47 | 0.47 | 0.46 | 0.46 | 0.47 | 0.49 | 0.49 | 0.50 | 0.51 | 0.52 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 0.37 | 0.37 | 0.36 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.40 | 0.39 | 0.38 | 0.36 | 0.36 | 0.40 | 0.36 | 0.37 | 0.37 | 0.37 | ||||||
| T-Mobile US Inc. | 0.54 | 0.54 | 0.55 | 0.53 | 0.53 | 0.53 | 0.54 | 0.53 | 0.53 | 0.54 | 0.52 | 0.51 | 0.52 | 0.52 | 0.52 | 0.51 | 0.52 | 0.53 | 0.53 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 170,452 ÷ 388,331 = 0.44
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's debt levels, total assets, and leverage ratios over the observed periods.
- Total Debt (Including Operating Lease Liability)
-
The total debt shows a gradual overall decline from the first quarter of 2021 through to the last quarter of 2025. Starting around $179.8 billion in early 2021, debt levels decreased slightly throughout 2021 with some fluctuations. In 2022 and 2023, total debt continued to trend downward with occasional small increases but maintained a general decreasing trajectory, reaching approximately $168.4 billion by the end of 2024. In 2025, debt levels stabilized around the $169-$170 billion range, representing a moderate reduction relative to the initial value.
- Total Assets
-
Total assets exhibited a steady upward trend across the entire period. Beginning at about $345.6 billion in the first quarter of 2021, assets grew consistently, reaching close to $388.3 billion by the final quarter of 2025. The asset base showed minor fluctuations quarter-to-quarter but generally followed a positive growth path, indicating asset accumulation or revaluation over time.
- Debt to Assets Ratio (Including Operating Lease Liability)
-
The debt to assets ratio declined over the period, reflecting improved leverage and potentially stronger financial stability. The ratio decreased from approximately 0.52 in early 2021 to around 0.44 by the end of 2025. This decline indicates that the proportion of debt relative to the asset base diminished, even though total debt decreased moderately. The steady reduction in this ratio suggests the company might be effectively managing its debt obligations relative to its asset growth.
Overall, the company demonstrates a strategic trend toward reducing leverage through consistent asset growth coupled with modest decreases in total debt. This pattern reflects prudent financial management aimed at enhancing the balance sheet strength over the analyzed period.
Financial Leverage
Verizon Communications Inc., financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 388,331) | 383,285) | 380,364) | 384,711) | 381,164) | 379,146) | 380,158) | 380,255) | 384,830) | 379,955) | 377,716) | 379,680) | 375,090) | 370,147) | 365,716) | 366,596) | 353,457) | 349,190) | 345,573) | ||||||
| Equity attributable to Verizon | 105,042) | 103,063) | 100,722) | 99,237) | 96,326) | 96,172) | 94,334) | 92,430) | 97,741) | 95,193) | 92,883) | 91,144) | 87,468) | 86,016) | 83,762) | 81,790) | 77,044) | 73,684) | 71,232) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 3.70 | 3.72 | 3.78 | 3.88 | 3.96 | 3.94 | 4.03 | 4.11 | 3.94 | 3.99 | 4.07 | 4.17 | 4.29 | 4.30 | 4.37 | 4.48 | 4.59 | 4.74 | 4.85 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 3.82 | 3.85 | 3.83 | 3.78 | 3.85 | 3.78 | 3.82 | 3.94 | 3.92 | 4.01 | 4.03 | 4.13 | 3.48 | 3.62 | 3.41 | 3.32 | 3.34 | 3.36 | 3.31 | ||||||
| T-Mobile US Inc. | 3.59 | 3.48 | 3.51 | 3.37 | 3.28 | 3.33 | 3.32 | 3.21 | 3.22 | 3.20 | 3.14 | 3.03 | 3.04 | 2.99 | 3.01 | 2.99 | 2.95 | 3.03 | 3.06 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Equity attributable to Verizon
= 388,331 ÷ 105,042 = 3.70
2 Click competitor name to see calculations.
The total assets of the company showed a general upward trend from March 31, 2021, to September 30, 2025. Starting at approximately $345.6 billion, assets increased steadily over the periods, reaching around $388.3 billion by the end of the observed timeframe. There was a minor fluctuation near the end of 2023, where assets slightly decreased before rising again towards the end of 2025. Overall, this suggests consistent growth in the company's asset base over the four-and-a-half-year span.
Equity attributable to Verizon also exhibited a positive trend throughout the corresponding periods. Beginning at roughly $71.2 billion in the first quarter of 2021, equity increased steadily to reach over $105 billion by the third quarter of 2025. There was a small decline observed around the end of 2023, where equity dropped from about $97.7 billion in the third quarter to approximately $92.4 billion in the fourth quarter, but it recovered quickly in subsequent periods. This pattern indicates that the company has generally strengthened its equity position over time, despite some short-term variability.
Financial leverage, calculated as a ratio, displayed a consistent downward trend across the periods analyzed. The ratio decreased from 4.85 in the first quarter of 2021 to 3.70 by the third quarter of 2025. The most significant decline occurred between 2021 and 2023, with a slight increase noted in the fourth quarter of 2023. Afterward, leverage levels resumed their downward movement. The reduction in financial leverage implies an improving balance sheet structure with the company relying less on debt relative to its equity, enhancing financial stability.
- Total assets
- Showed steady growth from $345.6 billion to $388.3 billion, with minor fluctuations toward the end of 2023.
- Equity attributable to Verizon
- Increased consistently from $71.2 billion to $105 billion, with a brief decline at the end of 2023 followed by recovery.
- Financial leverage
- Declined from 4.85 to 3.70 over the period, indicating reduced reliance on debt and a stronger equity base.
Interest Coverage
Verizon Communications Inc., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to Verizon | 4,950) | 5,003) | 4,879) | 5,005) | 3,306) | 4,593) | 4,602) | (2,705) | 4,762) | 4,648) | 4,909) | 6,577) | 4,900) | 5,199) | 4,580) | 4,613) | 6,407) | 5,800) | 5,245) | ||||||
| Add: Net income attributable to noncontrolling interest | 106) | 118) | 104) | 109) | 105) | 109) | 120) | 132) | 122) | 118) | 109) | 121) | 124) | 116) | 131) | 124) | 147) | 149) | 133) | ||||||
| Add: Income tax expense | 1,471) | 1,488) | 1,490) | 1,454) | 891) | 1,332) | 1,353) | 756) | 1,308) | 1,346) | 1,482) | 2,113) | 1,496) | 1,542) | 1,372) | 1,407) | 1,820) | 1,875) | 1,700) | ||||||
| Add: Interest expense | 1,664) | 1,639) | 1,632) | 1,644) | 1,672) | 1,698) | 1,635) | 1,599) | 1,433) | 1,285) | 1,207) | 1,105) | 937) | 785) | 786) | 739) | 801) | 844) | 1,101) | ||||||
| Earnings before interest and tax (EBIT) | 8,191) | 8,248) | 8,105) | 8,212) | 5,974) | 7,732) | 7,710) | (218) | 7,625) | 7,397) | 7,707) | 9,916) | 7,457) | 7,642) | 6,869) | 6,883) | 9,175) | 8,668) | 8,179) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 4.98 | 4.64 | 4.52 | 4.46 | 3.21 | 3.59 | 3.78 | 4.08 | 6.49 | 7.16 | 8.11 | 8.82 | 8.89 | 9.83 | 9.97 | 9.44 | 8.72 | 7.64 | 6.88 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| AT&T Inc. | 5.20 | 3.83 | 3.66 | 3.47 | 3.10 | 3.62 | 3.82 | 3.96 | 0.04 | 0.36 | 0.37 | 0.49 | 5.27 | 5.20 | 4.53 | 4.91 | 1.70 | 1.14 | 1.12 | ||||||
| T-Mobile US Inc. | 5.30 | 5.53 | 5.47 | 5.31 | 4.95 | 4.68 | 4.42 | 4.30 | 4.11 | 3.36 | 2.44 | 1.94 | 1.43 | 1.50 | 1.92 | 2.00 | 2.19 | 2.50 | 2.06 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (8,191 + 8,248 + 8,105 + 8,212)
÷ (1,664 + 1,639 + 1,632 + 1,644)
= 4.98
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends concerning earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over multiple periods.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrates variability across the quarters with several fluctuations. In the earlier periods, EBIT shows a generally positive trend, increasing from approximately 8,179 million USD to a peak near 9,916 million USD. However, a significant drop occurs in one quarter to -218 million USD, which appears to be an outlier or may indicate an extraordinary event affecting operational profitability. Following this dip, EBIT largely recovers and stabilizes, mostly fluctuating within the range of roughly 5,974 million USD to 8,248 million USD in the later quarters. Overall, there is no consistent upward or downward trend, but EBIT reflects operational volatility during the period analyzed.
- Interest Expense
- The interest expense exhibits a gradual and persistent increase throughout the periods. Starting from approximately 1,101 million USD, interest expense rises steadily, reaching over 1,664 million USD in the most recent quarter. This upward trend suggests growing debt servicing costs, potentially due to increased borrowing or rising interest rates, putting additional financial pressure on the company despite fluctuations in operating earnings.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, initially shows strong coverage ratios, peaking near 9.97. Subsequently, a discernible declining trend emerges. The ratio gradually decreases to a low point around 3.21, reflecting reduced buffer to cover interest expenses from operational earnings. Toward the latest quarters, a mild recovery in coverage occurs, increasing to just under 5. This decline in interest coverage indicates increased financial risk, as EBIT is less sufficient to cover interest expenses, especially given the rise in interest costs.
In summary, the company experiences fluctuating operational earnings with a notable one-time negative EBIT, steadily increasing interest costs, and a decreasing trend in interest coverage ratio that partially recovers later. These patterns suggest that while the company maintains operational profitability for most quarters, the rising cost of debt and decreasing interest coverage ratio warrant attention regarding financial risk management and debt servicing capability.