VZ Debt-to-Equity Ratio: Formula and Meaning

Verizon Communications’ (NYSE: VZ) debt-to-equity ratio compares its debt with the shareholders’ equity reported on its balance sheet. There is no single permanent figure: the result depends on the reporting date, the debt definition, and whether you use book or market equity, so calculate it from a specified filing rather than treating an undated number as current.

What Verizon’s debt-to-equity ratio measures

The ratio describes how much debt a company reports relative to its equity. A result of 1.0 means $1 of debt for each $1 of equity under the definitions used; a result of 2.0 means $2 of debt per $1 of equity. It is a leverage measure, not a direct measure of whether a company can make its next payment.

For a reproducible calculation, use the same period-end balance sheet for both figures. A common version is total debt divided by total shareholders’ equity. Some sources instead use long-term debt alone, or total liabilities rather than interest-bearing debt. Those are different ratios and can produce substantially different values.

How to calculate the ratio

Use the following calculator with figures taken from the same Verizon filing and expressed in the same currency and scale. Enter debt and equity as reported; the result is a ratio in times, not a percentage.

Formula

Debt-to-equity ratio = total debt ÷ shareholders’ equity.

• Total debt is the debt amount you choose to include, in dollars. For a broad balance-sheet measure, add current debt and long-term debt, following the company’s presentation.
• Shareholders’ equity is the equity amount reported for the same date, in dollars. State whether the figure includes noncontrolling interests if that distinction matters to your comparison.
• Debt-to-equity ratio is dimensionless and commonly written as “times.” The units cancel because both inputs are dollar amounts.

This calculator uses total debt divided by equity. It does not automatically retrieve Verizon’s financial statements, decide which debt items to include, or adjust for leases. If equity is zero, the ratio is undefined; a negative equity figure produces a negative mathematical result that is generally not interpreted like an ordinary positive leverage ratio. The input limit excludes zero equity so the calculation remains defined.

Worked Example

Using the calculator’s default illustrative inputs—not a claim about Verizon’s latest reported balances—the calculation is:

1. Total debt = $150,000,000,000.
2. Shareholders’ equity = $90,000,000,000.
3. Divide debt by equity: $150,000,000,000 ÷ $90,000,000,000 = 1.6667.
4. Rounded to two decimal places, debt-to-equity = 1.67 times.

For Verizon’s actual ratio, replace both example inputs with figures from the same dated filing. Do not mix a debt balance from one quarter with equity from another.

Finding Verizon’s figures and choosing a definition

Verizon reports financial statements in its periodic filings and annual reports. In the consolidated balance sheet, look for current debt or current maturities of long-term debt, long-term debt, and total stockholders’ equity. The precise line labels and presentation can vary by filing. Add debt categories only once; for example, do not add a reported total debt figure to its current and long-term components.

• Total debt: often combines short-term borrowings and long-term borrowings. Check the filing’s notes for detail and for any debt-like obligations excluded from the headline balance-sheet line.
• Long-term debt: focuses on borrowings due beyond the near term. It can be useful for a narrower view, but it is not interchangeable with total debt.
• Total liabilities: includes obligations beyond borrowings, such as accounts payable and other liabilities. Dividing it by equity gives a liabilities-to-equity measure, not a debt-to-equity ratio under the common definition.
• Book equity versus market equity: the calculator uses balance-sheet equity (book value). A market-equity version divides debt by the company’s stock-market value, which changes with share price and is a different measure.

For a quick check, record the filing date, the exact debt and equity line items, and your formula. This makes the calculation understandable and repeatable, especially when comparing Verizon across quarters or with another company.

How to interpret the result—and its limits

A higher positive ratio means more debt relative to the chosen equity figure; a lower one means less debt relative to equity on that same basis. Neither number, on its own, establishes whether debt is manageable. Companies differ in cash flows, asset needs, business risks, financing structures, and accounting balances, so comparisons need context.

Equity can also move for reasons other than new borrowing, including earnings, dividends, share repurchases, and other comprehensive income. If equity is unusually small, the ratio can look very large even when debt has not changed much. If equity is negative, a conventional positive “times” comparison breaks down; examine the underlying balance sheet and other measures instead.

Debt-to-equity does not show interest expense, debt maturities, cash on hand, or operating cash flow. Readers often mistake it for a percentage of total financing: a ratio of 1.67 means debt is 1.67 times equity, not that debt is 167% of all capital. To assess a company more fully, analysts may also examine net debt, interest coverage, cash flow, and maturity disclosures—but each answers a different question.

Frequently Asked Questions

What is Verizon’s debt-to-equity ratio?
It depends on the reporting date and calculation method. Divide Verizon’s debt by its shareholders’ equity from the same balance sheet, and identify which debt definition you used. An undated figure cannot be treated as a current, definitive value.

What is the formula for VZ debt to equity?
Using the common total-debt definition, divide total debt by total shareholders’ equity. Use figures from one reporting date and the same currency and scale.

Does debt-to-equity include Verizon’s leases?
Not necessarily. The answer depends on the chosen definition and how the company presents lease obligations. Check the filing and clearly state whether lease liabilities are included; do not assume every published ratio treats them alike.

Is debt-to-equity the same as debt-to-assets?
No. Debt-to-equity divides debt by shareholders’ equity. Debt-to-assets divides debt by total assets. Their denominators and interpretations differ.

Why do websites show different VZ ratios?
They may use different filing dates, debt categories, book or market equity, or rounding. Some may use total liabilities instead of interest-bearing debt. Compare the source data and definitions before comparing the reported results.

Related

• No Cost Refinance Los Angeles: What It Really Means
• Non-QM Refinance Process: Steps, Documents, and Costs
• No Cost Refinance: How It Works and What It Costs

in debt | Total debt | $ | 150000000000 | 0 | 10000000000000
in eq | Shareholders' equity | $ | 90000000000 | 0.01 | 10000000000000
out de | Debt-to-equity ratio | x | debt / eq | 2