Verizon Communications (XKAZ:VZ_KZ) Debt-to-EBITDA

: 10.18 (As of Dec. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

Verizon Communications's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $17,239 Mil. Verizon Communications's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $157,703 Mil. Verizon Communications's annualized EBITDA for the quarter that ended in Dec. 2023 was $17,192 Mil. Verizon Communications's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 10.18.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Verizon Communications's Debt-to-EBITDA or its related term are showing as below:

XKAZ:VZ_KZ' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.23 Med: 3.05 Max: 4.36
Current: 4.36

During the past 13 years, the highest Debt-to-EBITDA Ratio of Verizon Communications was 4.36. The lowest was 2.23. And the median was 3.05.

XKAZ:VZ_KZ's Debt-to-EBITDA is ranked worse than
78.16% of 316 companies
in the Telecommunication Services industry
Industry Median: 2.21 vs XKAZ:VZ_KZ: 4.36

Verizon Communications Debt-to-EBITDA Historical Data

The historical data trend for Verizon Communications's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verizon Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

3.02

3.35

3.62

3.60

4.36

Verizon Communications Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA																3.12	3.71	3.78	3.57	10.18

Competitive Comparison

For the Telecom Services subindustry, Verizon Communications's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Verizon Communications Debt-to-EBITDA Distribution

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Verizon Communications's Debt-to-EBITDA falls into.

Verizon Communications Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Verizon Communications's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(17239	+	157703)	/	40135
	=	4.36

Verizon Communications's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(17239	+	157703)	/	17192
	=	10.18

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Verizon Communications (XKAZ:VZ_KZ) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Verizon Communications Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Verizon Communications's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Verizon Communications (XKAZ:VZ_KZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Verizon Communications Inc (XKAZ:VZ_KZ) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

VZ:USA VZ:Peru VZ:Mexico 1VZ:Italy BACd:UK 0Q1S:UK BAC:Germany VZ:Chile VZ:Canada VERZ34:Brazil VZ:Austria VZ:Argentina

Address

1095 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.verizon.com

Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.

Verizon Communications (XKAZ:VZ_KZ) Headlines

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