Verizon Communications Inc (VZ)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	28,560,000	20,789,000	22,366,000	22,022,000	22,030,000	32,175,000	32,005,000	32,252,000	31,392,000	28,356,000	30,051,000	31,044,000	32,352,000	32,796,000	30,516,000	29,134,000	27,667,000	25,213,000	26,391,000	25,649,000
Interest expense (ttm)	US$ in thousands	6,649,000	6,604,000	6,365,000	5,952,000	5,524,000	5,030,000	4,534,000	4,034,000	3,613,000	3,247,000	3,111,000	3,170,000	3,485,000	3,826,000	4,069,000	4,314,000	4,247,000	4,326,000	4,428,000	4,554,000
Interest coverage		4.30	3.15	3.51	3.70	3.99	6.40	7.06	8.00	8.69	8.73	9.66	9.79	9.28	8.57	7.50	6.75	6.51	5.83	5.96	5.63

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $28,560,000K ÷ $6,649,000K
= 4.30

Verizon Communications Inc's interest coverage ratio has displayed a generally declining trend from March 2020 to December 2024. The interest coverage ratio started at 5.63 in March 2020, indicating that the company generated operating income that was 5.63 times larger than its interest expenses. The ratio improved steadily, reaching a peak of 9.79 in March 2022.

However, from that point onward, the interest coverage ratio began to decrease. By December 2024, the ratio had dropped to 4.30, signaling a potential decrease in the company's ability to cover its interest obligations with its operating income.

Overall, fluctuations in the interest coverage ratio of Verizon Communications Inc suggest variations in the company's ability to service its debt obligations over the analyzed period. Investors and stakeholders may closely monitor this trend to assess the company's financial health and ability to manage its debt levels effectively.