Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Verizon Communications Inc., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Verizon Communications Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Verizon Communications Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Verizon Communications Inc. total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Verizon Communications Inc. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover
Verizon Communications Inc., net fixed asset turnover 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) | ||||||
| Operating revenues | 133,974) | 136,835) | 133,613) | 128,292) | 131,868) | |
| Plant, property and equipment, net | 108,310) | 107,434) | 99,696) | 94,833) | 91,915) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.24 | 1.27 | 1.34 | 1.35 | 1.43 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AT&T Inc. | 0.95 | 0.95 | 1.34 | 1.35 | 1.39 | |
| T-Mobile US Inc. | 1.80 | 1.75 | 1.86 | 1.55 | 1.82 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Telecommunication Services | 1.19 | 1.20 | 1.42 | 1.38 | 1.45 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.68 | 1.73 | 1.90 | 1.72 | 1.81 | |
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
Net fixed asset turnover = Operating revenues ÷ Plant, property and equipment, net
= 133,974 ÷ 108,310 = 1.24
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Verizon Communications Inc. net fixed asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Verizon Communications Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Operating revenues | 133,974) | 136,835) | 133,613) | 128,292) | 131,868) | |
| Plant, property and equipment, net | 108,310) | 107,434) | 99,696) | 94,833) | 91,915) | |
| Operating lease right-of-use assets | 24,726) | 26,130) | 27,883) | 22,531) | 22,694) | |
| Plant, property and equipment, net (including operating lease, right-of-use asset) | 133,036) | 133,564) | 127,579) | 117,364) | 114,609) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.01 | 1.02 | 1.05 | 1.09 | 1.15 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AT&T Inc. | 0.82 | 0.81 | 1.13 | 1.13 | 1.18 | |
| T-Mobile US Inc. | 1.11 | 1.07 | 1.14 | 0.95 | 1.26 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Telecommunication Services | 0.95 | 0.94 | 1.10 | 1.08 | 1.18 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.42 | 1.43 | 1.54 | 1.41 | 1.52 | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues ÷ Plant, property and equipment, net (including operating lease, right-of-use asset)
= 133,974 ÷ 133,036 = 1.01
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Verizon Communications Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
Verizon Communications Inc., total asset turnover 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) | ||||||
| Operating revenues | 133,974) | 136,835) | 133,613) | 128,292) | 131,868) | |
| Total assets | 380,255) | 379,680) | 366,596) | 316,481) | 291,727) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.35 | 0.36 | 0.36 | 0.41 | 0.45 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AT&T Inc. | 0.30 | 0.30 | 0.31 | 0.33 | 0.33 | |
| T-Mobile US Inc. | 0.38 | 0.38 | 0.39 | 0.34 | 0.52 | |
| Total Asset Turnover, Sector | ||||||
| Telecommunication Services | 0.34 | 0.34 | 0.34 | 0.35 | 0.38 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.48 | 0.47 | 0.45 | 0.41 | 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
Total asset turnover = Operating revenues ÷ Total assets
= 133,974 ÷ 380,255 = 0.35
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Verizon Communications Inc. total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Equity Turnover
Verizon Communications Inc., equity turnover 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) | ||||||
| Operating revenues | 133,974) | 136,835) | 133,613) | 128,292) | 131,868) | |
| Equity attributable to Verizon | 92,430) | 91,144) | 81,790) | 67,842) | 61,395) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.45 | 1.50 | 1.63 | 1.89 | 2.15 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AT&T Inc. | 1.19 | 1.24 | 1.02 | 1.06 | 0.98 | |
| T-Mobile US Inc. | 1.21 | 1.14 | 1.16 | 1.05 | 1.56 | |
| Equity Turnover, Sector | ||||||
| Telecommunication Services | 1.29 | 1.31 | 1.21 | 1.25 | 1.30 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.14 | 1.16 | 1.09 | 1.00 | 1.04 | |
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
Equity turnover = Operating revenues ÷ Equity attributable to Verizon
= 133,974 ÷ 92,430 = 1.45
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Verizon Communications Inc. equity turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |