Verizon Communications Inc (VZ)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 28,686,000 21,865,000 23,412,000 22,814,000 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
Total assets US$ in thousands 384,711,000 381,164,000 379,146,000 380,158,000 380,255,000 384,830,000 379,955,000 377,716,000 379,680,000 375,090,000 370,147,000 365,716,000 366,596,000 353,457,000 349,190,000 345,573,000 316,481,000 296,994,000 293,259,000 294,500,000
Operating ROA 7.46% 5.74% 6.17% 6.00% 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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $28,686,000K ÷ $384,711,000K
= 7.46%

Verizon Communications Inc's operating return on assets (operating ROA) has shown a gradual decline over the reported periods, starting at 9.93% as of March 31, 2020, and decreasing to 5.74% as of September 30, 2024. The operating ROA experienced fluctuations during the analyzed period but generally trended downwards.

This decreasing trend in operating ROA may indicate challenges in generating operating income relative to its asset base. It suggests that Verizon may be facing difficulties in efficiently utilizing its assets to generate profits from its core operations. It is important for the company to monitor and improve its operational efficiency to enhance its profitability and return on assets in the future.