Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Verizon Communications Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 26.68 24.76 18.43 28.51 38.49
Receivables turnover 5.34 5.58 5.60 5.36 5.19
Payables turnover 5.48 6.76 7.00 7.68 7.08
Working capital turnover 8.59
Average No. Days
Average inventory processing period 14 15 20 13 9
Add: Average receivable collection period 68 65 65 68 70
Operating cycle 82 80 85 81 79
Less: Average payables payment period 67 54 52 48 52
Cash conversion cycle 15 26 33 33 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Verizon Communications Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Verizon Communications Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Verizon Communications Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Verizon Communications Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Verizon Communications Inc. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Verizon Communications Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Verizon Communications Inc. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023.

Inventory Turnover

Verizon Communications Inc., inventory turnover 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)
Cost of services and wireless equipment 54,887 59,133 56,301 51,201 54,726
Inventories 2,057 2,388 3,055 1,796 1,422
Short-term Activity Ratio
Inventory turnover1 26.68 24.76 18.43 28.51 38.49
Benchmarks
Inventory Turnover, Competitors2
AT&T Inc. 23.02 16.28 23.04 21.63 29.38
T-Mobile US Inc. 17.99 19.22 14.26 11.19 19.21
Inventory Turnover, Sector
Telecommunication Services 22.87 19.77 19.01 19.88 29.98
Inventory Turnover, Industry
Communication Services 52.08 44.81 39.09 36.78 47.97

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
Inventory turnover = Cost of services and wireless equipment ÷ Inventories
= 54,887 ÷ 2,057 = 26.68

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Verizon Communications Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Verizon Communications Inc., receivables turnover 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 revenues 133,974 136,835 133,613 128,292 131,868
Accounts receivable, net 25,085 24,506 23,846 23,917 25,429
Short-term Activity Ratio
Receivables turnover1 5.34 5.58 5.60 5.36 5.19
Benchmarks
Receivables Turnover, Competitors2
AT&T Inc. 11.90 10.53 9.61 8.50 8.00
T-Mobile US Inc. 16.74 17.90 19.10 16.00 23.58
Receivables Turnover, Sector
Telecommunication Services 8.36 8.34 8.39 7.61 7.17
Receivables Turnover, Industry
Communication Services 7.76 8.07 7.77 7.20 7.04

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
Receivables turnover = Operating revenues ÷ Accounts receivable, net
= 133,974 ÷ 25,085 = 5.34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Verizon Communications Inc. receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Verizon Communications Inc., payables turnover 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)
Cost of services and wireless equipment 54,887 59,133 56,301 51,201 54,726
Accounts payable 10,021 8,750 8,040 6,667 7,725
Short-term Activity Ratio
Payables turnover1 5.48 6.76 7.00 7.68 7.08
Benchmarks
Payables Turnover, Competitors2
AT&T Inc. 1.84 1.63 2.59 2.51 2.84
T-Mobile US Inc. 5.42 5.02 5.63 5.08 4.29
Payables Turnover, Sector
Telecommunication Services 3.15 3.11 3.81 3.62 3.78
Payables Turnover, Industry
Communication Services 4.91 4.73 4.79 4.63 4.48

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
Payables turnover = Cost of services and wireless equipment ÷ Accounts payable
= 54,887 ÷ 10,021 = 5.48

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Verizon Communications Inc. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

Verizon Communications Inc., working capital turnover 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)
Current assets 36,814 37,857 36,728 54,594 37,473
Less: Current liabilities 53,223 50,171 47,160 39,660 44,868
Working capital (16,409) (12,314) (10,432) 14,934 (7,395)
 
Operating revenues 133,974 136,835 133,613 128,292 131,868
Short-term Activity Ratio
Working capital turnover1 8.59
Benchmarks
Working Capital Turnover, Competitors2
AT&T Inc.
T-Mobile US Inc. 31.35
Working Capital Turnover, Sector
Telecommunication Services 64.80
Working Capital Turnover, Industry
Communication Services 10.57 11.82 7.57 4.32 6.31

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
Working capital turnover = Operating revenues ÷ Working capital
= 133,974 ÷ -16,409 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Verizon Communications Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 26.68 24.76 18.43 28.51 38.49
Short-term Activity Ratio (no. days)
Average inventory processing period1 14 15 20 13 9
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AT&T Inc. 16 22 16 17 12
T-Mobile US Inc. 20 19 26 33 19
Average Inventory Processing Period, Sector
Telecommunication Services 16 18 19 18 12
Average Inventory Processing Period, Industry
Communication Services 7 8 9 10 8

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 26.68 = 14

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Verizon Communications Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

Verizon Communications Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 5.34 5.58 5.60 5.36 5.19
Short-term Activity Ratio (no. days)
Average receivable collection period1 68 65 65 68 70
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AT&T Inc. 31 35 38 43 46
T-Mobile US Inc. 22 20 19 23 15
Average Receivable Collection Period, Sector
Telecommunication Services 44 44 44 48 51
Average Receivable Collection Period, Industry
Communication Services 47 45 47 51 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.34 = 68

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Verizon Communications Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 14 15 20 13 9
Average receivable collection period 68 65 65 68 70
Short-term Activity Ratio
Operating cycle1 82 80 85 81 79
Benchmarks
Operating Cycle, Competitors2
AT&T Inc. 47 57 54 60 58
T-Mobile US Inc. 42 39 45 56 34
Operating Cycle, Sector
Telecommunication Services 60 62 63 66 63
Operating Cycle, Industry
Communication Services 54 53 56 61 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).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 14 + 68 = 82

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Verizon Communications Inc. operating cycle improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Average Payables Payment Period

Verizon Communications Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 5.48 6.76 7.00 7.68 7.08
Short-term Activity Ratio (no. days)
Average payables payment period1 67 54 52 48 52
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AT&T Inc. 199 223 141 145 129
T-Mobile US Inc. 67 73 65 72 85
Average Payables Payment Period, Sector
Telecommunication Services 116 118 96 101 97
Average Payables Payment Period, Industry
Communication Services 74 77 76 79 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.48 = 67

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Verizon Communications Inc. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

Verizon Communications Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 14 15 20 13 9
Average receivable collection period 68 65 65 68 70
Average payables payment period 67 54 52 48 52
Short-term Activity Ratio
Cash conversion cycle1 15 26 33 33 27
Benchmarks
Cash Conversion Cycle, Competitors2
AT&T Inc. -152 -166 -87 -85 -71
T-Mobile US Inc. -25 -34 -20 -16 -51
Cash Conversion Cycle, Sector
Telecommunication Services -56 -56 -33 -35 -34
Cash Conversion Cycle, Industry
Communication Services -20 -24 -20 -18 -21

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 14 + 6867 = 15

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Verizon Communications Inc. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023.