Verizon Communications Inc (VZ)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	98,499,000	91,774,000	90,351,000	81,252,000	67,507,000
ROE		17.77%	12.66%	23.53%	27.16%	26.37%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $17,506,000K ÷ $98,499,000K
= 17.77%

Verizon Communications Inc's return on equity (ROE) has shown a fluctuating trend over the years. In 2020, the ROE was 26.37%, reflecting a strong performance in generating profit relative to shareholders' equity. The following year, there was a slight improvement with ROE increasing to 27.16%, indicating continued efficiency in utilizing equity to generate returns.

However, in 2022, there was a notable decrease in ROE to 23.53%, which could suggest potential challenges or changes impacting the company's profitability and efficiency. This trend continued in 2023, where the ROE further dropped to 12.66%, signaling a significant decline in the company's ability to generate profit from shareholders' equity.

In the most recent year, 2024, the ROE improved to 17.77%, but it still remained below the levels seen in 2020 and 2021. This suggests that while there was some recovery in profitability, the company may still be working towards fully optimizing its use of equity to generate returns.

Overall, the fluctuations in Verizon Communications Inc's ROE over the years indicate varying levels of effectiveness in leveraging shareholder investments to generate profits. This analysis underscores the importance of monitoring ROE as a key metric of financial performance and efficiency.