Verizon Communications Inc (VZ)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $91,774,000K)
= 0.00
Verizon Communications Inc's debt-to-capital ratio has shown relatively consistent levels over the past five years, ranging from 0.62 to 0.66. This ratio indicates the proportion of the company's capital structure that is financed by debt.
The stable debt-to-capital ratio could suggest that Verizon has maintained a balanced mix of debt and equity in its capital structure over the years. A ratio around 0.6 to 0.7 is generally considered reasonable for a company in the telecommunications industry like Verizon, where significant capital investments are required.
Verizon's ability to consistently manage its debt levels in relation to its total capital reflects a disciplined approach to financial management. However, it is essential to continue monitoring this ratio to ensure that the company's debt position remains sustainable and in line with its overall financial strategy.
Peer comparison
Dec 31, 2023