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Verizon Communications (LIM:VZ) 3-Year ROIIC % : -1.74% (As of Dec. 2023)


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What is Verizon Communications 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. Verizon Communications's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was -1.74%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Verizon Communications's 3-Year ROIIC % or its related term are showing as below:

LIM:VZ's 3-Year ROIIC % is ranked worse than
65.95% of 370 companies
in the Telecommunication Services industry
Industry Median: 3.235 vs LIM:VZ: -1.74

Verizon Communications 3-Year ROIIC % Historical Data

The historical data trend for Verizon Communications's 3-Year ROIIC % 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 3-Year ROIIC % Chart

Verizon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.38 -51.04 2.80 -3.50 -1.74

Verizon Communications Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % Get a 7-Day Free Trial 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 - -1.74 - - -

Competitive Comparison of Verizon Communications's 3-Year ROIIC %

For the Telecom Services subindustry, Verizon Communications's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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's 3-Year ROIIC % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Verizon Communications's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Verizon Communications's 3-Year ROIIC % falls into.



Verizon Communications 3-Year ROIIC % Calculation

Verizon Communications's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 20447.216 (Dec. 2023) - 22047.7488 (Dec. 2020) )/( 370390 (Dec. 2023) - 278271 (Dec. 2020) )
=-1600.5328/92119
=-1.74%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Verizon Communications  (LIM:VZ) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Verizon Communications 3-Year ROIIC % Related Terms

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Verizon Communications Business Description

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