Aureus
COkay

Verizon Communications Inc.(VZ)

C

Financial data as of Dec 31, 2025Declining · Communication Services

FCF Margin14.2%Free Cash Flow / Revenue
Cash Conversion216.2%Operating CF / Net Income
Free Cash Flow$19.7B
Revenue$138.2B
Net Cash-$162.6BNet debt position
Debt / FCF9.2xElevated debt burden
Current Ratio0.91Tight short-term liquidity
YoY FCF Growth-18.6%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 (9.2x)
→
+0.5Healthy FCF margin with manageable debt (14.2%, 9.2x)
→
-1Current ratio below 1.0 (0.91)
→
-0.5FCF trend declining (-18.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalC

Analysis Summary

Strengths

  • Healthy FCF margin (14.2%)
  • Excellent cash conversion (216%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($162.6B net debt, 9.2x FCF)
  • High debt-to-FCF ratio (9.2x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.2%
Net Margin12.4%
Operating CF Margin26.9%
CapEx Ratio12.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$162.6BNet debt position
Debt / FCF9.2xElevated debt burden
Current Ratio0.91Tight liquidity
Debt / Equity1.74Moderate leverage

Quarterly FCF Trend

-18.6% YoYDeclining (-18.6%)

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$19.7B
Revenue$138.2B
Net Income$17.2B
Operating Cash Flow$37.1B
Capital Expenditure$17.5B
FCF Margin14.2%
Cash Conversion Rate216.2%
Net Margin12.4%
Total Debt$181.6B
Total Cash$19.0B
Net Cash-$162.6B
Current Ratio0.91
Debt / Equity1.74
Debt / FCF9.2x
YoY FCF Growth-18.6%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance

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