VZNEUTRAL

Return on Equity (ROE)

17.2%

Updated 8h ago

Sector Performance

60th percentile

17.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity — a 17.2% ROE means Verizon earns $0.172 for each dollar of equity invested.

This figure sits above the sector median of 13.8%, placing Verizon in the 60th percentile among its sector peers, indicating above-average profitability efficiency. No year-over-year or quarter-over-quarter changes are available, and the trend direction over the last eight quarters is also not provided, leaving the metric's trajectory unknown. The combination of a high current ROE with no trend data creates an unclear picture: the strong level suggests efficient equity use, but the absence of historical movement makes it impossible to assess stability or direction. This supports the overall NEUTRAL verdict, as the metric offers a positive snapshot without the trend context needed for a more definitive stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about VZ?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are VZ's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.