Verizon Communications Inc (VZ)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.91 | 4.14 | 4.20 | 4.51 | 4.69 |
Verizon Communications Inc has shown a consistent and strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all indicate a ratio of 0.00 for the years 2020 to 2024. This suggests that the company has minimal or no debt in relation to its total assets, capital, and equity, indicating a low financial risk and a healthy financial position.
Additionally, the Financial leverage ratio has been decreasing from 4.69 in 2020 to 3.91 in 2024. A decreasing trend in the financial leverage ratio signifies a reduction in the reliance on debt financing, implying that the company is becoming less leveraged over time.
Overall, based on the solvency ratios, Verizon Communications Inc exhibits a strong financial position with minimal debt levels and decreasing leverage, indicating a stable and healthy solvency position over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.89 | 3.99 | 8.69 | 9.28 | 6.51 |
Verizon Communications Inc's interest coverage ratio has shown mixed performance over the past five years. In December 2020, the company had an interest coverage ratio of 6.51, indicating that it generated 6.51 times the earnings needed to cover its interest expenses. This ratio improved to 9.28 in December 2021, showing a stronger ability to cover interest payments.
However, this positive trend reversed in the subsequent years, with the interest coverage ratio declining to 8.69 in December 2022, 3.99 in December 2023, and further dropping to 3.89 in December 2024. These lower ratios suggest that the company may be struggling to generate sufficient earnings to comfortably cover its interest obligations, potentially indicating increased financial risk and highlighting the need for closer scrutiny of the company's debt management and operational performance in the future.