Verizon Communications Inc (VZ)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 3.91 | 3.99 | 3.97 | 4.05 | 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 |
Based on the provided data, it is evident that Verizon Communications Inc has consistently maintained a strong solvency position over the years, as indicated by its solvency ratios.
1. Debt-to-assets ratio: Verizon's debt-to-assets ratio has consistently remained at 0.00 throughout the reporting periods. This indicates that the company has not incurred any debt relative to its total assets, showcasing a financially stable position.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also consistently been reported at 0.00 across all periods. This suggests that Verizon's capital structure is not significantly reliant on debt financing, further supporting its strong financial health.
3. Debt-to-equity ratio: The debt-to-equity ratio has also maintained a steady 0.00 throughout the analyzed periods. This implies that Verizon has not relied on debt to finance its operations in relation to its equity, showcasing a low-risk financial profile.
4. Financial leverage ratio: The financial leverage ratio has shown a declining trend over the years, starting at 4.90 in March 2020 and gradually decreasing to 3.91 by December 31, 2024. This indicates that Verizon has been reducing its reliance on debt to support its operations, which is a positive indicator of improved financial strength and stability.
In conclusion, Verizon Communications Inc's solvency ratios reflect a consistently robust financial position with minimal debt obligations and a decreasing reliance on debt financing, demonstrating strong financial discipline and prudent management of capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Verizon Communications Inc's interest coverage has shown a generally increasing trend from March 31, 2020, to June 30, 2022, indicating the company's improving ability to cover its interest expenses. The interest coverage ratio peaked at 9.79 on March 31, 2022, reflecting a strong ability to meet its interest payment obligations.
However, starting from September 30, 2022, the interest coverage ratio started to decline, indicating a potential decline in the company's ability to cover its interest expenses efficiently. By December 31, 2024, the interest coverage ratio decreased to 4.30, which may raise concerns regarding the company's ability to service its debt obligations comfortably.
It would be advisable for stakeholders to monitor Verizon Communications Inc's interest coverage ratio closely to ensure the company can effectively manage its interest expenses and maintain a healthy financial position.