Aureus
BGood

Verizon Communications Inc.(VZ)

B

Financial data as of Dec 31, 2024Improving · Communication Services

FCF Margin14.0%Free Cash Flow / Revenue
Cash Conversion210.9%Operating CF / Net Income
Free Cash Flow$18.9B
Revenue$134.8B
Net Cash-$164.2BNet debt position
Debt / FCF8.9xElevated debt burden
Current Ratio0.63Tight short-term liquidity
YoY FCF Growth+17.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
-1High debt-to-FCF ratio (8.9x)
→
+0.5Healthy FCF margin with manageable debt (14.0%, 8.9x)
→
-1Current ratio below 1.0 (0.63)
→
+1Strong YoY FCF growth (17.9% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (14.0%)
  • Excellent cash conversion (211%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Heavy debt position ($164.2B)
  • High debt-to-FCF ratio (8.9x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.0%
Net Margin13.0%
Operating CF Margin27.4%
CapEx Ratio13.3%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$164.2BNet debt position
Debt / FCF8.9xElevated debt burden
Current Ratio0.63Tight liquidity
Debt / Equity1.70Moderate leverage

Quarterly FCF Trend

+17.9% YoYImproving (+17.9%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameVerizon Communications Inc.
SectorCommunication Services
Free Cash Flow$18.9B
Revenue$134.8B
Net Income$17.5B
Operating Cash Flow$36.9B
Capital Expenditure$18.0B
FCF Margin14.0%
Cash Conversion Rate210.9%
Net Margin13.0%
Total Debt$168.4B
Total Cash$4.2B
Net Cash-$164.2B
Current Ratio0.63
Debt / Equity1.70
Debt / FCF8.9x
YoY FCF Growth+17.9%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeB
Data SourceYahoo Finance

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