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.


See also:

Verizon Communications Inc Financial Leverage