Verizon Communications Inc (VZ)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.14 | 3.96 | 4.01 | 4.08 | 4.20 | 4.33 | 4.34 | 4.39 | 4.51 | 4.62 | 4.77 | 4.87 | 4.69 | 4.59 | 4.70 | 4.90 | 4.77 | 4.85 | 5.02 | 5.09 |
Verizon Communications Inc's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.40, suggesting that 40% of the company's assets are financed by debt. This suggests a moderate level of leverage.
The debt-to-capital ratio, similarly, hovers around 0.62, indicating that 62% of the company's capital structure is debt-financed. This ratio has been consistent, reflecting a balanced mix of debt and equity in the company's capital structure.
The debt-to-equity ratio has shown slight fluctuations but generally remains around 1.6 to 1.8, indicating that the company relies more on debt financing compared to equity. This ratio suggests that Verizon has a higher level of financial risk due to its significant debt obligations.
The financial leverage ratio has also varied but generally stays above 4, indicating that the company's assets are financed more by debt than equity. This ratio signifies that Verizon's operations are highly leveraged, which can increase both returns and risks for investors.
Overall, based on these solvency ratios, Verizon Communications Inc appears to have a manageable level of debt and financial leverage, with a consistent but relatively high reliance on debt financing. This suggests that the company has the capacity to meet its long-term financial commitments, but investors should closely monitor its debt levels and financial health.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 5.70 | 5.16 | 5.06 | 5.10 |
Verizon Communications Inc's interest coverage ratio has shown a declining trend over the past eight quarters, decreasing from 10.31 in Q2 2022 to 5.54 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A higher interest coverage ratio is generally seen as a positive indicator of a company's financial health, as it suggests that the company is more capable of meeting its interest obligations. However, the decreasing trend in Verizon's interest coverage ratio may raise concerns about its ability to service its debt in the long term. It is important for investors and analysts to closely monitor this trend and evaluate the company's overall financial stability and debt management strategies.