Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Verizon Communications Inc., profitability ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Verizon Communications Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Verizon Communications Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Verizon Communications Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Verizon Communications Inc. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Verizon Communications Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Gross Profit Margin
Verizon Communications Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 80,691) | 79,087) | 77,702) | 77,312) | 77,091) | |
| Operating revenues | 134,788) | 133,974) | 136,835) | 133,613) | 128,292) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 59.87% | 59.03% | 56.79% | 57.86% | 60.09% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 59.77% | 59.06% | 57.89% | 52.74% | 53.47% | |
| T-Mobile US Inc. | 63.57% | 61.57% | 54.50% | 54.31% | 58.67% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × 80,691 ÷ 134,788 = 59.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Verizon Communications Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Verizon Communications Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 28,686) | 22,877) | 30,467) | 32,448) | 28,798) | |
| Operating revenues | 134,788) | 133,974) | 136,835) | 133,613) | 128,292) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 21.28% | 17.08% | 22.27% | 24.29% | 22.45% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 15.57% | 19.16% | -3.80% | 13.83% | 3.73% | |
| T-Mobile US Inc. | 22.13% | 18.16% | 8.22% | 8.60% | 9.70% | |
| Operating Profit Margin, Sector | ||||||
| Telecommunication Services | — | 18.09% | 9.62% | 16.38% | 11.36% | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | — | 22.22% | 16.70% | 22.45% | 16.35% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × 28,686 ÷ 134,788 = 21.28%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Verizon Communications Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Net Profit Margin
Verizon Communications Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Verizon | 17,506) | 11,614) | 21,256) | 22,065) | 17,801) | |
| Operating revenues | 134,788) | 133,974) | 136,835) | 133,613) | 128,292) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 12.99% | 8.67% | 15.53% | 16.51% | 13.88% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AT&T Inc. | 8.95% | 11.76% | -7.06% | 11.89% | -3.01% | |
| T-Mobile US Inc. | 13.93% | 10.59% | 3.25% | 3.77% | 4.48% | |
| Net Profit Margin, Sector | ||||||
| Telecommunication Services | — | 10.25% | 4.54% | 11.81% | 4.26% | |
| Net Profit Margin, Industry | ||||||
| Communication Services | — | 16.68% | 11.47% | 18.71% | 11.50% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
Net profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 17,506 ÷ 134,788 = 12.99%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Verizon Communications Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Return on Equity (ROE)
Verizon Communications Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Verizon | 17,506) | 11,614) | 21,256) | 22,065) | 17,801) | |
| Equity attributable to Verizon | 99,237) | 92,430) | 91,144) | 81,790) | 67,842) | |
| Profitability Ratio | ||||||
| ROE1 | 17.64% | 12.57% | 23.32% | 26.98% | 26.24% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AT&T Inc. | 10.49% | 13.94% | -8.74% | 12.07% | -3.20% | |
| T-Mobile US Inc. | 18.37% | 12.85% | 3.72% | 4.38% | 4.69% | |
| ROE, Sector | ||||||
| Telecommunication Services | — | 13.18% | 5.93% | 14.24% | 5.32% | |
| ROE, Industry | ||||||
| Communication Services | — | 18.94% | 13.32% | 20.34% | 11.50% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 17,506 ÷ 99,237 = 17.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Verizon Communications Inc. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Return on Assets (ROA)
Verizon Communications Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Verizon | 17,506) | 11,614) | 21,256) | 22,065) | 17,801) | |
| Total assets | 384,711) | 380,255) | 379,680) | 366,596) | 316,481) | |
| Profitability Ratio | ||||||
| ROA1 | 4.55% | 3.05% | 5.60% | 6.02% | 5.62% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AT&T Inc. | 2.77% | 3.54% | -2.12% | 3.64% | -0.98% | |
| T-Mobile US Inc. | 5.45% | 4.00% | 1.23% | 1.46% | 1.53% | |
| ROA, Sector | ||||||
| Telecommunication Services | — | 3.45% | 1.54% | 4.02% | 1.51% | |
| ROA, Industry | ||||||
| Communication Services | — | 7.94% | 5.43% | 8.36% | 4.69% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 2024 Calculation
ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 17,506 ÷ 384,711 = 4.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Verizon Communications Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |