Verizon Communications Inc (VZ)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 | 131,868,000 |
| Property, plant and equipment | US$ in thousands | 108,310,000 | 107,434,000 | 99,696,000 | 94,833,000 | 91,915,000 |
| Fixed asset turnover | 1.24 | 1.27 | 1.34 | 1.35 | 1.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $133,974,000K ÷ $108,310,000K
= 1.24
Verizon Communications Inc's fixed asset turnover ratio has seen a decreasing trend over the past five years. The ratio was 1.24 in 2023, down from 1.27 in 2022, 1.34 in 2021, 1.35 in 2020, and 1.43 in 2019. This indicates that the company is generating less revenue for each dollar invested in fixed assets. A declining fixed asset turnover ratio may suggest operational inefficiencies or underutilization of fixed assets. Further analysis of the company's efficiency in utilizing fixed assets is warranted to understand the reasons behind this trend.
Peer comparison
Dec 31, 2023
Company name
Symbol
Fixed asset turnover
Verizon Communications Inc
VZ
1.24
AT&T Inc
T
0.95
Consolidated Communications
CNSL
0.45
Frontier Communications Parent Inc
FYBR
0.41
Lumen Technologies Inc
LUMN
0.74
Shenandoah Telecommunications Co
SHEN
0.34
Telephone and Data Systems Inc
TDS
1.02