Verizon Communications (BUE:VZ) ROCE % : 10.59% (As of Dec. 2024)

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What is Verizon Communications ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Verizon Communications's annualized ROCE % for the quarter that ended in Dec. 2024 was 10.59%.

Verizon Communications ROCE % Historical Data

The historical data trend for Verizon Communications's ROCE % 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.

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Verizon Communications ROCE % Chart

Verizon Communications Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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12.32

12.13

12.22

9.38

13.57

Verizon Communications Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															-0.27	13.22	9.89	7.72	10.59

Verizon Communications ROCE % Calculation

Verizon Communications's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	29924280.299	/	( ( (137272055.124 - 19213503.017)	+	(388558113.886 - 65418710.654) )	/ 2 )
	=	29924280.299	/	( (118058552.107	+	323139403.232)	/ 2 )
	=	29924280.299	/	220598977.6695
	=	13.57 %

Verizon Communications's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	33176480.332	/	( ( (362296366.077 - 58756105.418)	+	(388558113.886 - 65418710.654) )	/ 2 )
	=	33176480.332	/	( ( 303540260.659	+	323139403.232 )	/ 2 )
	=	33176480.332	/	313339831.9455
	=	10.59 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Verizon Communications (BUE:VZ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Verizon Communications ROCE % Related Terms

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Verizon Communications Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Verizon Communications Inc (BUE:VZ) » Definitions » ROCE %

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Address

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

Website

https://www.verizon.com

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 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, which reach about 30 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 agreed to acquire Frontier Communications in September 2024.