Verizon Communications Inc (VZ)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 76,055,000 | 91,666,000 | 92,325,000 | 79,353,000 | 84,612,000 |
| Revenue | US$ in thousands | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 | 131,868,000 |
| Gross profit margin | 56.77% | 66.99% | 69.10% | 61.85% | 64.16% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $76,055,000K ÷ $133,974,000K
= 56.77%
Verizon Communications Inc's gross profit margin, which represents the percentage of sales revenue that exceeds the cost of goods sold, has shown some fluctuations over the past five years. In 2023, the gross profit margin improved to 59.03% from 56.79% in 2022. This indicates that Verizon was able to generate more profit from each dollar of sales revenue in 2023 compared to the previous year.
However, when looking at a longer-term perspective, the gross profit margin in 2023 is lower than that of 2020 and 2019, which were 60.09% and 58.50% respectively. This suggests that Verizon may have faced challenges in controlling the cost of goods sold in 2023 compared to those prior years.
Overall, while the gross profit margin for Verizon in 2023 showed improvement from the previous year, it is essential for the company to monitor and manage its cost structure effectively to enhance profitability and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2023