Revenue Analysis
Total and Operating Revenue: VZ’s total revenue shows moderate fluctuations between the periods, with an increase from $32.596 billion in Q2 2023 to $35.13 billion in Q4 2023, followed by a slight decrease to $32.981 billion in Q1 2024. Operating revenue generally mirrors total revenue, indicating that the core operations are the main revenue drivers.
Gross Profit: Gross profit margins have generally been consistent. The lowest reported gross profit was $19.448 billion in Q4 2023 while the highest was $20.109 billion in Q1 2024. This consistency shows effective management of production and service provisioning costs relevant to revenue.
Cost Management
Cost of Revenue: VZ’s cost of revenue peaked in Q4 2023 at $15.182 billion before slightly decreasing. This suggests higher operational activity or cost factors in the period with the highest costs.
Operating Expense: Operating expenses followed a similar trend, peaking in Q4 2023 at $13.507 billion. This rise could be correlated with scaled operations or strategic investments.
Total Expenses: The total expenses were highest in Q4 2023 at $28.689 billion, reflecting the increased cost of revenue and operating expenses for that period.
Profitability Analysis
EBITDA: EBITDA was highest in Q1 2024 at $12.055 billion, indicating better operational efficiency or profit margins in that period compared to a low of $4.298 billion in Q4 2023.
Operating Income: From a loss in Q4 2023, operating income improved significantly, reaching $7.521 billion in Q1 2024, reflecting successful cost management or recovery in revenue.
Pretax Income: The pretax income was notably negative in Q4 2023, at -$1.817 billion, but improved to $6.075 billion by Q1 2024, suggesting recovery or improved operational performance.
Net Income: Net income trends reflect pretax income trajectories, recovering from a loss of -$2.705 billion in Q4 2023 to $4.602 billion in Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation charges show a steady increase, supporting the growing asset base or investment in capital-intensive operations, crucial for long-term capacity.
Interest Expense: Interest expense has risen over the periods, peaking at $1.635 billion in Q1 2024, suggesting increased borrowing, possibly for financing expansion activities.
Taxation
Tax Rate: The tax rate has experienced minor adjustments, with the notable variation from 0.21 in Q4 2023 to 0.223 in Q1 2024, influencing net income after taxes.
Tax Provision: Tax provisions peaked at $1.483 billion in Q1 2024, aligned with the periods of high taxable income.
Tax Effect of Unusual Items: The tax effect shows significant variance, notably with a large negative impact in Q4 2023 of -$1.209 billion, directly affecting the net income of that period.
Shareholder Metrics
Diluted and Basic EPS: EPS has shown considerable variability, moving from -$0.64 in Q4 2023 to $1.09 in Q1 2024, reflecting the volatility in net income across the periods.
Average Shares: The number of average shares remained relatively stable, suggesting consistent shareholder equity dilution across periods.
Net Income Available to Common Stockholders: This metric follows the net income trends closely, evidencing the direct impact of operational success on shareholders’ returns.
Conclusion
VZ has demonstrated resilience in managing its operations and financials amid varying market and operational challenges. The recovery in key financial metrics from Q4 2023 to Q1 2024 suggests effective strategic management. Continued focus on cost efficiency, careful capital management, and leveraging market opportunities are recommended to sustain and improve profitability and shareholder value.