Verizon CommunicationsVZA.PFD 64 Interest Coverage is 4.25 as of Mar. 2026, which is 33% below its 10-year median of 6.32. GuruFocus rates VZA.PFD with a GF Score™ of 64/100. The stock has 6 warning signs investors should review. Among 286 Telecommunication Services companies, Verizon Communications ranks worse than 55.59% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Verizon Communications's
Operating Income
for the
three
months ended in Mar. 2026 was $8,242.00 Mil. Verizon Communications's Interest Expense for the
three
months ended in Mar. 2026 was $-1,940.00 Mil.
Verizon Communications's interest coverage for the quarter that ended in Mar. 2026 was 4.25.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Verizon Communications's Interest Coverage or its related term are showing as below:
VZA.PFD'
s Interest Coverage Range Over the Past 10 Years
Min: 4.22 Med: 6.32 Max: 9.31
Current: 4.22
VZA.PFD's Interest Coverage is ranked worse than 55.59% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs VZA.PFD: 4.22
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Verizon Communications Interest Coverage Related Terms
Verizon Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Verizon Communications's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
VZA.PFD vs TMUS, T, CMCSA: Interest Coverage Comparison
For the Telecom Services subindustry, Verizon Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Verizon Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Verizon Communications's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Verizon Communications (VZA.PFD) has a Interest Coverage of 4.25 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Verizon Communications and its competitors. This is 33% below median its historical median of 6.32. Over the past decade, Verizon Communications' Interest Coverage has ranged from 4.22 to 9.31. According to the industry distribution chart, Verizon Communications ranks #159 out of 286 companies in the Telecommunication Services industry, placing it in the top 55.6%.
Is Verizon Communications' Interest Coverage too high?
Verizon Communications' current Interest Coverage of 4.25 is 33% below median its 10-year median of 6.32. Over the past 10 years, this metric has ranged from a low of 4.22 to a high of 9.31. The Telecommunication Services industry median Interest Coverage is 4.72. Verizon Communications' value of 4.25 is 9.9% below this industry median. Based on the distribution chart, Verizon Communications ranks #159 out of 286 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Verizon Communications has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Verizon Communications' Interest Coverage compare to TMUS and T?
According to the Telecommunication Services industry distribution chart, Verizon Communications ranks #159 out of 286 companies for Interest Coverage. This places Verizon Communications in the lower half of its industry. The industry median Interest Coverage is 4.72. Verizon Communications' value of 4.25 is 9.9% below this benchmark. Historically, Verizon Communications' own Interest Coverage has ranged from 4.22 to 9.31 over the past decade. While the company's 10-year median is 6.32 vs. the industry median of 4.72, Verizon Communications has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verizon Communications's current Interest Coverage of 4.25 is 9.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Verizon Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verizon Communications's current Interest Coverage is 4.25, which is 33% below median its own 10-year median of 6.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verizon Communications stock overvalued right now?
Verizon Communications (VZA.PFD) has a current Interest Coverage of 4.25. The current Interest Coverage is 4.25, which is 33% below median its 10-year median of 6.32 and 9.9% below the Telecommunication Services industry median of 4.72. Verizon Communications' overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Verizon Communications (VZA.PFD), the current Interest Coverage is 4.25 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Wireless services account for 75% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 94 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast that reach about 30 million homes and businesses, including about 20 million served by the Fios fiber-optic network. Verizon closed its acquisition of Frontier Communications in January, adding networks that reach another 15 million locations, including 9 million with fiber. These networks serve about 11 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, using a mix of its own and other networks.
64GF Score
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