Verizon Communications Inc (VZ)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 | 291,727,000 |
| Operating ROA | 6.02% | 8.02% | 8.85% | 9.10% | 10.41% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $22,877,000K ÷ $380,255,000K
= 6.02%
Verizon Communications Inc's operating return on assets (operating ROA) has shown a general downward trend over the past five years, decreasing from 10.47% in 2019 to 7.54% in 2023. This suggests that the company's ability to generate earnings from its operating assets has weakened over time.
The decline in operating ROA may indicate inefficiencies in the company's operations or decreasing profitability in relation to its asset base. It is important for Verizon to address these trends and assess the effectiveness of its asset utilization and operational performance to improve its ROA going forward.
Investors and stakeholders should closely monitor Verizon's operating ROA to evaluate the company's operational efficiency and profitability in utilizing its assets to generate income. Further analysis and comparison with industry benchmarks can provide additional insights into Verizon's financial performance relative to its peers.
Peer comparison
Dec 31, 2023