Verizon Communications Inc (VZ)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 380,255,000 | 379,680,000 | 366,596,000 | 316,481,000 | 291,727,000 |
| Total stockholders’ equity | US$ in thousands | 91,774,000 | 90,351,000 | 81,252,000 | 67,507,000 | 61,173,000 |
| Financial leverage ratio | 4.14 | 4.20 | 4.51 | 4.69 | 4.77 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $380,255,000K ÷ $91,774,000K
= 4.14
The financial leverage ratio of Verizon Communications Inc has shown a slight decrease in recent years, declining from 4.75 in 2019 to 4.11 in 2023. This trend indicates that the company has been able to lower its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a stronger financial position and reduced risk of insolvency. However, it is important to note that the ratio is still relatively high, indicating that Verizon continues to use a significant amount of debt in its capital structure. Overall, the decreasing trend in the financial leverage ratio is a positive sign for Verizon's financial health and sustainability.
Peer comparison
Dec 31, 2023