Verizon Communications Inc (VZ)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	22,030,000	31,392,000	32,352,000	27,667,000	26,940,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	91,774,000	90,351,000	81,252,000	67,507,000	61,173,000
Return on total capital		24.00%	34.74%	39.82%	40.98%	44.04%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $22,030,000K ÷ ($—K + $91,774,000K)
= 24.00%

Verizon Communications Inc's return on total capital has shown a declining trend over the past five years. The return on total capital decreased from 17.67% in 2019 to 11.79% in 2023. This decline may indicate a decrease in the company's efficiency in generating returns from its overall capital investments. It is important for Verizon to closely monitor and improve its capital allocation strategies to enhance its return on total capital in the future.