Verizon Communications Inc (VZ)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 60.35% | 38.92% | 41.48% | 41.12% | 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% |
| Operating profit margin | 21.28% | 16.29% | 17.44% | 17.02% | 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% |
| Pretax margin | 16.72% | 10.52% | 11.92% | 11.99% | 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% |
| Net profit margin | 12.99% | 7.30% | 8.38% | 8.44% | 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% |
Verizon Communications Inc's profitability ratios have shown some fluctuations over the period under review. The gross profit margin, which indicates the efficiency of the company's production and pricing strategies, started at a high of 72.78% in March 2020 but declined steadily to 41.74% by December 2023 before recovering slightly to 60.35% by December 2024.
The operating profit margin, reflecting the company's ability to control operating expenses, remained relatively stable around the 22-24% range from March 2020 to December 2022. However, it experienced a decline to 16.29% by September 2024 before improving to 21.28% by December 2024.
The pretax margin, which shows the proportion of earnings before taxes to total revenue, exhibited a similar trend as the operating profit margin, hovering around 16-21% until December 2022. It saw a significant drop to 10.52% by September 2024 but then recovered to 16.72% by December 2024.
The net profit margin, representing the percentage of revenue that translates into profit after all expenses have been deducted, fluctuated as well, reaching a low of 7.30% in September 2024 but rebounding to 12.99% by December 2024.
Overall, while there were fluctuations in Verizon Communications Inc's profitability ratios over the period analyzed, the company managed to maintain reasonable levels of profitability despite facing challenges and experiencing some declines in margins.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 4.55% | 2.57% | 2.97% | 2.97% | 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% |
| Return on total capital | 29.00% | 21.74% | 23.40% | 23.45% | 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% |
| Return on equity (ROE) | 17.77% | 10.25% | 11.77% | 12.04% | 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% |
Verizon Communications Inc's profitability ratios show a declining trend over the analyzed period. The Operating return on assets (Operating ROA) decreased from 9.93% in March 2020 to 5.74% in September 2024, indicating a decrease in profitability generated from its operating assets.
Similarly, the Return on assets (ROA) declined from 6.24% in March 2020 to 2.57% in September 2024, showing a decreasing trend in the company's overall asset efficiency in generating profits.
Return on total capital also followed a downward trajectory, dropping from 42.70% in March 2020 to 21.74% in September 2024, suggesting a reduction in the return generated on both equity and debt capital employed by the company.
Return on equity (ROE) experienced a similar trend, declining from 30.62% in March 2020 to 10.25% in September 2024, indicating a decreasing profitability relative to the shareholders' equity in the company.
Overall, the profitability ratios of Verizon Communications Inc show a decreasing trend over the analyzed period, signaling potential challenges in generating profits efficiently from its assets and capital.
See also:
Verizon Communications Inc Profitability Ratios (Quarterly Data)