Verizon Communications (VZ) Financials

The income statement provides a snapshot of Verizon Communications Inc's financial performance over a given period. It shows the company's revenues, expenses, and net income. In the case of Verizon, the income statement reveals the income generated from its various operations. For example, Verizon's total revenue for the latest fiscal year was $131.87 billion. The company reported a gross profit of $57.32 billion, which is the difference between its revenue and cost of goods sold. After accounting for operating expenses, interest expenses, and taxes, Verizon's net income attributable to shareholders amounted to $18.77 billion.

Moving on to the balance sheet, it presents Verizon's assets, liabilities, and stockholders' equity. At the end of the latest fiscal year, Verizon had total assets worth $273.51 billion. These assets include cash equivalents, accounts receivable, and property, plant, and equipment, among others. The company reported total liabilities of $112.26 billion, including short-term and long-term debt. The stockholders' equity, representing shareholders' ownership interest, was $133.43 billion. This figure is derived by subtracting liabilities from assets.

Analyzing cash flow is crucial to understanding Verizon's ability to generate cash and its financial flexibility. The cash flow statement breaks down cash inflows and outflows into three categories: operating activities, investing activities, and financing activities. In terms of operating cash flow, Verizon reported $40.9 billion, which demonstrates its ability to generate cash from its core operations. The investing cash flow, which includes capital expenditures and investments, was -$17.83 billion. This negative value indicates that Verizon had significant cash outflows for investments during the period. Lastly, the financing cash flow, which includes dividends paid and debt issuances, was -$13.48 billion. This negative value suggests that Verizon had more cash outflows related to financing activities than inflows.

It's also important to consider financial ratios when assessing Verizon's financial health. Two commonly used ratios are EBITDA (earnings before interest, taxes, depreciation, and amortization) and net debt. EBITDA provides insight into a company's operating profitability, excluding non-operating factors. For Verizon, the EBITDA for the latest fiscal year was $47.31 billion. This indicates the company's ability to generate earnings from its core operations. Net debt, on the other hand, reveals the company's debt obligations. Verizon's net debt at the end of the fiscal year was $120.61 billion, indicating its level of indebtedness.