Verizon Communications Inc (VZ)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 11,614,000 | 21,256,000 | 22,065,000 | 17,801,000 | 19,265,000 |
| Total stockholders’ equity | US$ in thousands | 91,774,000 | 90,351,000 | 81,252,000 | 67,507,000 | 61,173,000 |
| ROE | 12.66% | 23.53% | 27.16% | 26.37% | 31.49% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $11,614,000K ÷ $91,774,000K
= 12.66%
Verizon Communications Inc's Return on Equity (ROE) has exhibited a declining trend over the past five years, decreasing from 31.38% in 2019 to 12.57% in 2023. This indicates that the company's ability to generate profits from shareholders' equity has weakened over this period. The drop in ROE could be attributed to various factors such as changes in the company's capital structure, operational inefficiencies, economic challenges, or increased competition within the industry. Investors and stakeholders may view the declining ROE as a cause for concern as it reflects a decreased profitability and efficiency of utilizing equity to generate returns. Further analysis of the company's financial performance and strategic decisions would be required to understand the underlying reasons for the downward trend in ROE and assess the company's overall financial health.
Peer comparison
Dec 31, 2023