Verizon Communications Inc (VZ)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 384,711,000 | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 |
| Total stockholders’ equity | US$ in thousands | 98,499,000 | 91,774,000 | 90,351,000 | 81,252,000 | 67,507,000 |
| Financial leverage ratio | 3.91 | 4.14 | 4.20 | 4.51 | 4.69 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $384,711,000K ÷ $98,499,000K
= 3.91
The financial leverage ratio of Verizon Communications Inc has shown a downward trend over the past five years, declining from 4.69 in December 31, 2020, to 3.91 in December 31, 2024. This indicates a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company has a lower level of debt relative to its equity, which can be seen as a positive sign of financial health and stability. Verizon's decreasing financial leverage ratio may indicate improved financial performance and risk management over the years.
Peer comparison
Dec 31, 2024