Verizon Communications Inc (VZ)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 17,506,000 | 11,614,000 | 21,256,000 | 22,065,000 | 17,801,000 |
| Total assets | US$ in thousands | 384,711,000 | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 |
| ROA | 4.55% | 3.05% | 5.60% | 6.02% | 5.62% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $17,506,000K ÷ $384,711,000K
= 4.55%
Verizon Communications Inc's return on assets (ROA) has exhibited fluctuations over the past five years. The ROA increased from 5.62% as of December 31, 2020, to 6.02% as of December 31, 2021, indicating improved efficiency in generating profits from its assets. However, there was a decline in ROA to 5.60% as of December 31, 2022, followed by a significant decrease to 3.05% as of December 31, 2023. This drop could suggest challenges in asset utilization or profitability during that period.
Subsequently, the ROA improved to 4.55% as of December 31, 2024, which may indicate a recovery in the company's asset profitability. Overall, while Verizon's ROA has experienced variability, it is essential to further evaluate the factors influencing these fluctuations to assess the company's operational efficiency and profitability in utilizing its assets effectively.
Peer comparison
Dec 31, 2024