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Verizon Communications Gross Margin %

: 57.32% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Verizon Communications's Gross Profit for the three months ended in Jun. 2022 was $19,369 Mil. Verizon Communications's Revenue for the three months ended in Jun. 2022 was $33,789 Mil. Therefore, Verizon Communications's Gross Margin % for the quarter that ended in Jun. 2022 was 57.32%.


The historical rank and industry rank for Verizon Communications's Gross Margin % or its related term are showing as below:

VZ' s Gross Margin % Range Over the Past 10 Years
Min: 57.35   Med: 59.28   Max: 62.76
Current: 57.35


During the past 13 years, the highest Gross Margin % of Verizon Communications was 62.76%. The lowest was 57.35%. And the median was 59.28%.

VZ's Gross Margin % is ranked better than
64.13% of 368 companies
in the Telecommunication Services industry
Industry Median: 48.57 vs VZ: 57.35

Verizon Communications had a gross margin of 57.32% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Verizon Communications was 0.30% per year.


Verizon Communications Gross Margin % Historical Data

The historical data trend for Verizon Communications's Gross Margin % 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.90 57.58 58.50 60.09 57.86

Verizon Communications Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.78 58.90 55.98 57.23 57.32

Competitive Comparison

For the Telecom Services subindustry, Verizon Communications's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Verizon Communications's Gross Margin % falls into.



Verizon Communications Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Verizon Communications's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=77312 / 133613
=(Revenue - Cost of Goods Sold) / Revenue
=(133613 - 56301) / 133613
=57.86 %

Verizon Communications's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=19369 / 33789
=(Revenue - Cost of Goods Sold) / Revenue
=(33789 - 14420) / 33789
=57.32 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Verizon Communications  (NYSE:VZ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Verizon Communications had a gross margin of 57.32% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Verizon Communications Gross Margin % Related Terms

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


Verizon Communications Business Description

Verizon Communications logo
Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Verizon is now primarily a wireless business (more than 70% of revenue and nearly all operating income). It serves about 91 million postpaid and 4 million prepaid phone customers and connects another 25 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier. The firm has agreed to acquire Tracfone, a wireless reseller that serves about 20 million prepaid customers in the U.S., from America Movil. Fixed-line telecom operations include local networks (12% of revenue) in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services (10%). Verizon Media Group, the online media and advertising firm formed with the acquisitions of AOL and Yahoo, provides the remainder of revenue.
Executives
Brouillette Manon officer: EVP and Group CEO-VZ Consumer 40 AVENUE SPRINGGROVE MONTREAL Z4 H3C 4M8
Hammock Samantha officer: EVP & Chief HR Officer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Tome Carol B director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Narasimhan Laxman director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Slater Rodney E director
Bertolini Mark T director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Otis Clarence Jr director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Archambeau Shellye L director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR NEW YORK NY 10036
Austin Roxanne S director 200 N SEPULVEDA BLVD PO BOX 956 MS ES/001/A102 EL SEGUNDO CA 90245
Healey Melanie director VERIZON COMMUNICATIONS INC. 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Weaver Gregory G. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Schulman Daniel H director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Qureshi Rima officer: EVP & Chief Strategy Officer 2000 PURCHASE STREET PURCHASE NY 10577
Gowrappan Kumara Guru officer: EVP and Group CEO-VZ Media 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Dunne Ronan officer: EVP and Group CEO-VZ Consumer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036

Verizon Communications Headlines

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