Verizon Communications Inc (VZ)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 134,788,000 | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 |
| Property, plant and equipment | US$ in thousands | 108,522,000 | 108,310,000 | 107,434,000 | 99,696,000 | 94,833,000 |
| Fixed asset turnover | 1.24 | 1.24 | 1.27 | 1.34 | 1.35 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $134,788,000K ÷ $108,522,000K
= 1.24
Verizon Communications Inc's fixed asset turnover has shown a gradual decline over the years, decreasing from 1.35 in December 2020 to 1.24 in December 2024. This indicates that the company is generating less revenue for each dollar invested in fixed assets. A declining fixed asset turnover may suggest inefficiencies in managing and utilizing the company's fixed assets. It could be due to factors such as underutilization of assets, overinvestment in fixed assets, or a decrease in revenue generation. Verizon may need to review its asset management strategies to improve the efficiency of its fixed asset utilization and enhance overall profitability.
Peer comparison
Dec 31, 2024