Verizon Communications Inc (VZ)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.74% | 64.72% | 65.46% | 66.53% | 66.99% | 68.47% | 69.02% | 69.38% | 69.10% | 65.11% | 64.03% | 63.12% | 61.85% | 72.12% | 72.57% | 72.78% | 73.76% | 73.80% | 73.44% | 72.80% |
| Operating profit margin | 17.08% | 22.00% | 22.17% | 22.21% | 22.27% | 22.74% | 23.72% | 24.18% | 24.29% | 23.85% | 23.18% | 23.15% | 22.45% | 22.01% | 22.17% | 22.27% | 23.04% | 18.55% | 18.21% | 17.25% |
| Pretax margin | 12.32% | 20.24% | 20.35% | 20.72% | 20.30% | 18.51% | 20.06% | 20.76% | 21.60% | 21.58% | 19.91% | 19.16% | 18.26% | 16.27% | 16.93% | 16.06% | 16.84% | 15.12% | 14.97% | 15.12% |
| Net profit margin | 8.67% | 15.58% | 15.58% | 15.85% | 15.53% | 14.22% | 15.48% | 15.93% | 16.51% | 16.42% | 15.05% | 14.58% | 13.88% | 14.26% | 14.76% | 14.00% | 14.61% | 12.26% | 12.08% | 12.20% |
Verizon Communications Inc's profitability ratios show a consistent and healthy performance over the past eight quarters. The gross profit margin has been gradually improving, from 56.79% in Q4 2022 to 59.03% in Q4 2023, indicating improved efficiency in generating revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has been relatively stable within a narrow range of 21.40% to 24.29% over the same period. This suggests that the company has been effective in managing its operating expenses to generate profit from its core business activities.
The pretax margin shows some variability, with peaks and troughs across quarters, but generally maintaining an upward trend over time, reaching 21.06% in Q1 2023. This indicates that Verizon has been successful in controlling its pre-tax expenses relative to its total revenue.
Lastly, the net profit margin also displays a positive trend, increasing from 14.22% in Q2 2022 to 8.67% in Q4 2023. This demonstrates the company's ability to effectively manage its taxes, interest expenses, and other costs to translate its revenue into net income.
Overall, Verizon Communications Inc's profitability ratios reflect a consistent and improving financial performance, showcasing effective cost management and revenue generation strategies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.05% | 5.43% | 5.54% | 5.71% | 5.60% | 5.14% | 5.62% | 5.85% | 6.02% | 6.24% | 5.72% | 5.47% | 5.62% | 6.16% | 6.53% | 6.24% | 6.60% | 5.65% | 5.59% | 5.64% |
| Return on total capital | 24.00% | 33.13% | 33.81% | 34.87% | 34.74% | 32.70% | 35.20% | 37.28% | 39.82% | 42.84% | 41.65% | 41.06% | 40.98% | 38.93% | 42.25% | 42.70% | 44.04% | 41.94% | 43.34% | 44.29% |
| Return on equity (ROE) | 12.66% | 21.52% | 22.22% | 23.34% | 23.53% | 22.24% | 24.37% | 25.70% | 27.16% | 28.79% | 27.28% | 26.62% | 26.37% | 28.26% | 30.65% | 30.62% | 31.49% | 27.43% | 28.07% | 28.74% |
Verizon Communications Inc's profitability ratios exhibit a consistent trend of positive performance over the analyzed quarters. The Operating return on assets (Operating ROA) fluctuated between 7.54% to 8.92% during Q1 2022 to Q4 2023, indicating the company's efficient management in generating operating income relative to its total assets.
The Return on assets (ROA) varied from 3.05% to 5.85% over the same period, reflecting Verizon's ability to generate profit from its assets. The decreasing trend in Q1 2023 followed by an increasing trend suggests fluctuations in asset efficiency during these quarters.
Verizon's Return on total capital remained relatively stable, ranging from 11.79% to 13.75% from Q1 2022 to Q4 2023, showcasing the company's effectiveness in generating returns from its total capital investments.
The Return on equity (ROE) demonstrated an upward trajectory from 12.57% to 25.55% in Q1 2022 to Q1 2023, indicating a favorable return to shareholders relative to their equity investment. This reflects Verizon's ability to generate profit from shareholder equity, indicating strong financial performance and potential appeal to investors.
Overall, Verizon Communications Inc's profitability ratios indicate a solid financial performance and efficient utilization of assets and capital to generate returns for both the company and its shareholders over the analyzed quarters.
See also:
Verizon Communications Inc Profitability Ratios (Quarterly Data)