Verizon Communications Inc (VZ)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	23.78	18.58	23.59	21.10	20.87	21.12	24.59	19.15	18.91	13.65	11.41	11.24	13.51	20.34	33.63	36.67	27.25	24.56	27.61	21.89
Receivables turnover	4.94	5.01	5.09	5.14	5.15	5.68	5.82	5.96	5.58	5.73	3.64	5.69	5.60	6.05	6.25	5.76	5.36	5.68	5.72	5.52
Payables turnover	5.13	—	—	—	4.28	—	—	—	5.16	—	—	—	5.14	—	—	—	7.34	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	141.27	8.59	53.78	—	—

Verizon Communications Inc's inventory turnover has shown some fluctuations over the years, ranging from a high of 36.67 in March 2021 to a low of 11.24 in March 2022. This indicates that the company has been managing its inventory efficiently, with a generally decreasing trend in recent periods.

In terms of receivables turnover, Verizon has maintained a relatively stable performance, with the ratio hovering around 5 to 6 times during most of the reporting periods. However, a significant drop was observed in June 2022, where the ratio fell to 3.64 times, indicating a potential issue with collecting receivables efficiently during that period.

The payables turnover ratio was not available for analysis in the earlier periods but has shown a decreasing trend from 5.14 in December 2021 to 5.13 in December 2024. This suggests a slight delay in payments to suppliers or possibly a change in the payment terms during the later periods.

Regarding the working capital turnover, the data was missing for the majority of the periods, except for September 2020, where the ratio was 53.78. This suggests that the company was able to effectively utilize its working capital to generate sales during that particular period.

Overall, Verizon's activity ratios indicate generally efficient management of inventory and receivables, with some fluctuations observed over the years. However, there may be some room for improvement in payables turnover and a more consistent utilization of working capital.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	15.35	19.65	15.47	17.30	17.49	17.28	14.84	19.06	19.30	26.74	31.98	32.48	27.01	17.95	10.85	9.95	13.40	14.86	13.22	16.67
Days of sales outstanding (DSO)	days	73.95	72.85	71.66	71.03	70.82	64.24	62.69	61.25	65.37	63.69	100.27	64.18	65.14	60.35	58.40	63.41	68.05	64.31	63.79	66.13
Number of days of payables	days	71.21	—	—	—	85.21	—	—	—	70.71	—	—	—	71.08	—	—	—	49.72	—	—	—

Verizon Communications Inc's activity ratios exhibit fluctuations over the analyzed periods.

1. Days of Inventory on Hand (DOH): The DOH metric, which measures the average number of days it takes for the company to sell its inventory, has shown a varying trend. It decreased from around 16.67 days in March 2020 to a low of 9.95 days in March 2021 before increasing significantly to 32.48 days in March 2022. Subsequently, it declined to 15.35 days by December 2024.

2. Days of Sales Outstanding (DSO): The DSO ratio, representing the average number of days it takes to collect revenue after a sale, also experienced fluctuations. It ranged from a low of 58.40 days in June 2021 to a high of 73.95 days by December 2024. Notably, there was a significant spike in June 2022 to 100.27 days, indicating a potential issue with collections efficiency.

3. Number of Days of Payables: The data regarding the number of days of payables is incomplete for several periods, indicated by the use of "— days." However, the available data shows that Verizon's payables turnover improved from 49.72 days in December 2020 to 85.21 days by December 2023 before declining slightly to 71.21 days by December 2024.

Overall, these activity ratios suggest that Verizon Communications Inc experienced some challenges in managing its inventory, collections, and payables turnover during the analyzed periods, which could impact its cash flow and working capital management.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	1.24	1.25	1.24	1.24	1.24	1.25	1.26	1.27	1.27	1.32	1.33	1.35	1.34	1.40	1.41	1.37	1.35	1.38	1.40	1.42
Total asset turnover	0.35	0.35	0.35	0.35	0.35	0.35	0.36	0.36	0.36	0.36	0.36	0.37	0.36	0.38	0.38	0.37	0.41	0.43	0.44	0.45

Verizon Communications Inc's long-term activity ratios can be analyzed through two key metrics: Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales.
- Verizon's Fixed Asset Turnover has been relatively stable over the analyzed period, ranging from 1.27 to 1.42.
- A decrease in the Fixed Asset Turnover ratio over time may indicate that Verizon is less efficient in generating sales from its fixed assets.
- The downward trend in Fixed Asset Turnover from 1.42 in March 2020 to 1.24 in December 2024 suggests a potential decrease in efficiency in utilizing fixed assets.

2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how effectively a company is using all its assets to generate revenue.
- Verizon's Total Asset Turnover has shown a declining trend, decreasing from 0.45 in March 2020 to 0.35 in December 2024.
- A decreasing Total Asset Turnover ratio may indicate that Verizon is becoming less effective in generating sales relative to its total assets.
- The declining trend in Total Asset Turnover suggests a need for Verizon to assess and improve its overall asset utilization efficiency.

In conclusion, the analysis of Verizon Communications Inc's long-term activity ratios indicates potential challenges in optimizing the utilization of its fixed assets and total assets to generate revenue. Monitoring these ratios over time can help identify areas for improvement in efficiency and productivity.