Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Verizon Communications Inc., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 59.03% 56.79% 57.86% 60.09% 58.50%
Operating profit margin 17.08% 22.27% 24.29% 22.45% 23.04%
Net profit margin 8.67% 15.53% 16.51% 13.88% 14.61%
Return on Investment
Return on equity (ROE) 12.57% 23.32% 26.98% 26.24% 31.38%
Return on assets (ROA) 3.05% 5.60% 6.02% 5.62% 6.60%

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).

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Verizon Communications Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Verizon Communications Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Verizon Communications Inc. ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Verizon Communications Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

Verizon Communications Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 79,087 77,702 77,312 77,091 77,142
Operating revenues 133,974 136,835 133,613 128,292 131,868
Profitability Ratio
Gross profit margin1 59.03% 56.79% 57.86% 60.09% 58.50%
Benchmarks
Gross Profit Margin, Competitors2
AT&T Inc. 59.06% 57.89% 52.74% 53.47% 53.56%
T-Mobile US Inc. 61.57% 54.50% 54.31% 58.67% 58.84%

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
Gross profit margin = 100 × Gross profit ÷ Operating revenues
= 100 × 79,087 ÷ 133,974 = 59.03%

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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Operating Profit Margin

Verizon Communications Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 22,877 30,467 32,448 28,798 30,378
Operating revenues 133,974 136,835 133,613 128,292 131,868
Profitability Ratio
Operating profit margin1 17.08% 22.27% 24.29% 22.45% 23.04%
Benchmarks
Operating Profit Margin, Competitors2
AT&T Inc. 19.16% -3.80% 13.83% 3.73% 15.43%
T-Mobile US Inc. 18.16% 8.22% 8.60% 9.70% 12.72%
Operating Profit Margin, Sector
Telecommunication Services 18.09% 9.62% 16.38% 11.36% 17.89%
Operating Profit Margin, Industry
Communication Services 22.22% 16.70% 22.45% 16.35% 19.85%

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
Operating profit margin = 100 × Operating income ÷ Operating revenues
= 100 × 22,877 ÷ 133,974 = 17.08%

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 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Verizon Communications Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
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
Operating revenues 133,974 136,835 133,613 128,292 131,868
Profitability Ratio
Net profit margin1 8.67% 15.53% 16.51% 13.88% 14.61%
Benchmarks
Net Profit Margin, Competitors2
AT&T Inc. 11.76% -7.06% 11.89% -3.01% 7.67%
T-Mobile US Inc. 10.59% 3.25% 3.77% 4.48% 7.71%
Net Profit Margin, Sector
Telecommunication Services 10.25% 4.54% 11.81% 4.26% 10.23%
Net Profit Margin, Industry
Communication Services 16.68% 11.47% 18.71% 11.50% 14.63%

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 profit margin = 100 × Net income attributable to Verizon ÷ Operating revenues
= 100 × 11,614 ÷ 133,974 = 8.67%

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 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Verizon Communications Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
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
Equity attributable to Verizon 92,430 91,144 81,790 67,842 61,395
Profitability Ratio
ROE1 12.57% 23.32% 26.98% 26.24% 31.38%
Benchmarks
ROE, Competitors2
AT&T Inc. 13.94% -8.74% 12.07% -3.20% 7.55%
T-Mobile US Inc. 12.85% 3.72% 4.38% 4.69% 12.05%
ROE, Sector
Telecommunication Services 13.18% 5.93% 14.24% 5.32% 13.35%
ROE, Industry
Communication Services 18.94% 13.32% 20.34% 11.50% 15.27%

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
ROE = 100 × Net income attributable to Verizon ÷ Equity attributable to Verizon
= 100 × 11,614 ÷ 92,430 = 12.57%

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 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Verizon Communications Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
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
Total assets 380,255 379,680 366,596 316,481 291,727
Profitability Ratio
ROA1 3.05% 5.60% 6.02% 5.62% 6.60%
Benchmarks
ROA, Competitors2
AT&T Inc. 3.54% -2.12% 3.64% -0.98% 2.52%
T-Mobile US Inc. 4.00% 1.23% 1.46% 1.53% 3.99%
ROA, Sector
Telecommunication Services 3.45% 1.54% 4.02% 1.51% 3.94%
ROA, Industry
Communication Services 7.94% 5.43% 8.36% 4.69% 6.30%

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
ROA = 100 × Net income attributable to Verizon ÷ Total assets
= 100 × 11,614 ÷ 380,255 = 3.05%

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 2021 to 2022 and from 2022 to 2023.