Verizon Communications Inc (VZ)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 22,877,000 | 30,467,000 | 32,448,000 | 28,798,000 | 30,378,000 |
| Revenue | US$ in thousands | 133,974,000 | 136,835,000 | 133,613,000 | 128,292,000 | 131,868,000 |
| Operating profit margin | 17.08% | 22.27% | 24.29% | 22.45% | 23.04% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $22,877,000K ÷ $133,974,000K
= 17.08%
Verizon Communications Inc's operating profit margin has shown a gradual decline over the past five years, with a decrease from 23.17% in 2019 to 21.40% in 2023. This downward trend indicates a decrease in the company's efficiency in generating profits from its core operations. Despite some fluctuations, the overall trend suggests a decrease in profitability relative to revenue.
The operating profit margin of 21.40% in 2023 indicates that Verizon is able to convert approximately 21.40% of its revenue into operating profit after deducting variable costs. While the profitability level is still relatively healthy, there may be factors impacting the company's ability to maintain higher margins, such as increasing costs, competitive pressures, or changes in the industry landscape.
It is essential for Verizon to monitor and analyze the underlying reasons for the declining operating profit margin to implement strategies that can help improve efficiency, control costs, and enhance profitability in the future.
Peer comparison
Dec 31, 2023