Verizon Communications Inc (VZ)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 | 291,727,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $380,255,000K
= 0.00
Verizon Communications Inc's debt-to-assets ratio has remained relatively stable over the past five years, ranging between 0.38 and 0.41. This ratio indicates the proportion of the company's assets that are financed by debt. A ratio of 0.40 in 2023 suggests that for every $1 of assets, Verizon has $0.40 of debt.
Consistently maintaining a debt-to-assets ratio around 0.40 indicates that Verizon has a balanced approach to capital structure, using a moderate level of debt to finance its operations while still relying significantly on equity. This level of debt suggests that the company has a relatively low risk of financial distress, as it has a significant portion of assets financed by equity.
Overall, Verizon's stable debt-to-assets ratio over the years reflects a prudent financial strategy that strikes a balance between leveraging debt for growth opportunities and maintaining a solid financial position.
Peer comparison
Dec 31, 2023