Verizon Communications Inc (VZ)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 28,686,000 | 22,877,000 | 30,467,000 | 32,448,000 | 28,798,000 |
| Total assets | US$ in thousands | 384,711,000 | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 |
| Operating ROA | 7.46% | 6.02% | 8.02% | 8.85% | 9.10% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $28,686,000K ÷ $384,711,000K
= 7.46%
Verizon Communications Inc's operating return on assets (Operating ROA) has experienced a gradual decline over the past five years. As of December 31, 2020, the Operating ROA stood at 9.10%, showing a relatively strong performance. However, by December 31, 2024, the Operating ROA had decreased to 7.46%, indicating a decrease in profitability generated from the company's assets.
The downward trend in Operating ROA suggests that Verizon may be facing challenges in efficiently utilizing its assets to generate operating income. This could be due to various factors such as increased operating expenses, a decrease in sales, or inefficiencies in asset management.
It is important for Verizon to closely monitor its Operating ROA and implement strategies to improve asset utilization and profitability. By analyzing the underlying reasons for the decline in Operating ROA, Verizon can make informed decisions to optimize resource allocation and improve overall financial performance in the future.
Peer comparison
Dec 31, 2024