The business behind the dividend
| Measure | VZ | Median | Formula |
|---|---|---|---|
| Return on equity | 16.2% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.1% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $18.51bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $20.13bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 21.2% | 15.0% | Operating income ÷ revenue |
| Net margin | 12.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.50x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.37x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.91x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.16x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 16.2% | 17.4% | 12.4% | 23.0% | 26.5% | 25.7% | 30.7% | 28.4% | 67.4% | 54.6% | 25.7% |
| Return on capital employed | 11.1% | 11.7% | 9.4% | 12.5% | 13.9% | 14.5% | 17.4% | 13.3% | 17.0% | 22.1% | 13.3% |
| Operating margin | 21.2% | 21.3% | 17.1% | 22.3% | 24.3% | 22.4% | 23.0% | 17.0% | 21.8% | 23.2% | 21.8% |
| Net margin | 12.4% | 13.0% | 8.7% | 15.5% | 16.5% | 13.9% | 14.6% | 11.9% | 23.9% | 10.4% | 13.0% |
| Debt to equity | 1.50x | 1.43x | 1.61x | 1.63x | 1.81x | 1.86x | 1.77x | 2.07x | 2.62x | 4.50x | 1.77x |
| Current ratio | 0.91x | 0.63x | 0.69x | 0.75x | 0.78x | 1.38x | 0.84x | 0.91x | 0.91x | 0.87x | 0.84x |
| Cash conversion | 2.16x | 2.11x | 3.23x | 1.75x | 1.79x | 2.35x | 1.86x | 2.21x | 0.81x | 1.65x | 1.86x |
How it compares in communications
Among the 25 communications companies here measured on free cash flow, Verizon Communications pays out less than 4 of them. The median for that group is 28.4%, against this company’s 57.0%.
Closest on free cash flow
- AT&T (T) 42.1%
- Telephone & Data Systems (TDS) 44.0%
- ACCO Brands (ACCO) 54.9%
- Sinclair (SBGI) 60.0%
Same sector and same denominator, so the figures are comparable. All 31 in communications →