Verizon Communications Inc (VZ)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	24.33	25.37	33.78	28.44
Receivables turnover	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	5.19	5.32	5.26	5.36
Payables turnover	4.28	—	—	—	5.16	—	—	—	5.14	—	—	—	7.34	—	—	—	4.48	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	141.27	8.59	53.78	—	—	—	—	—	—

Verizon Communications Inc's inventory turnover has shown a consistent improvement over the quarters, with Q4 2023 reaching the highest level of 26.68. This indicates that the company efficiently manages its inventory, with a higher turnover reflecting better liquidity and potentially lower risk of inventory obsolescence.

The receivables turnover ratio of Verizon Communications Inc has been relatively stable, hovering around 5.5 to 6 over the quarters. This demonstrates that the company efficiently collects payments from its customers, converting receivables into cash in a timely manner.

The payables turnover data is incomplete, with only Q4 2022 and Q1 2023 figures available. However, the available data suggests a slightly decreasing trend in payables turnover, which could indicate that the company is taking longer to pay its suppliers.

The working capital turnover information is missing for all quarters. Without this data, it is difficult to assess how effectively Verizon Communications Inc is utilizing its working capital to generate sales.

In conclusion, Verizon Communications Inc's inventory and receivables turnover ratios show efficient management of assets, while the trend in payables turnover warrants further monitoring to ensure optimal working capital management.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	15.00	14.39	10.81	12.83
Days of sales outstanding (DSO)	days	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	70.39	68.66	69.40	68.06
Number of days of payables	days	85.21	—	—	—	70.71	—	—	—	71.08	—	—	—	49.72	—	—	—	81.49	—	—	—

Days of inventory on hand (DOH) measures how quickly a company sells through its inventory. A lower DOH indicates the company is managing its inventory efficiently. Verizon's DOH has fluctuated over the quarters, ranging from 12.22 days to 23.23 days, with a recent decrease to 13.68 days in Q4 2023.

Days of sales outstanding (DSO) indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO suggests efficient collection practices. Verizon's DSO has remained relatively stable between 61.25 days and 68.34 days over the quarters, with a slight increase to 68.34 days in Q4 2023.

Number of days of payables represents how long a company takes to pay its suppliers. A longer payables period may indicate stronger cash flow management. Verizon's payables data is incomplete for the recent quarters, but in Q4 2022, the number of days of payables was 54.01 days, suggesting a relatively efficient payment system.

Overall, based on the activity ratios, Verizon has shown some fluctuations in its inventory management efficiency and collection practices but appears to maintain effective cash flow management and payment terms with suppliers.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	1.43	1.48	1.49	1.49
Total asset turnover	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	0.45	0.46	0.46	0.46

Verizon Communications Inc's fixed asset turnover has shown a consistent decline over the past eight quarters, moving from 1.35 in Q1 2022 to 1.24 in Q4 2023. This indicates that the company is generating less revenue from its fixed assets each quarter. Conversely, the total asset turnover has remained relatively stable, fluctuating between 0.35 and 0.37 during the same period.

The decreasing trend in fixed asset turnover may suggest that Verizon is not efficiently utilizing its fixed assets to generate sales, which could potentially result in lower profitability. It is important for the company to monitor and improve its fixed asset turnover ratio to ensure optimal utilization of assets and maximize revenue generation.