Verizon Communications reported total debt of approximately US$152.5 billion, with a net debt of about US$147.5 billion, as of September 2024.
Understanding Verizon's Debt
When evaluating a company's financial health, it's important to distinguish between total (or gross) debt and net debt. Total debt represents the full amount of money a company owes to lenders. Net debt, on the other hand, provides a more comprehensive picture by subtracting the company's cash and cash equivalents from its total debt. This gives an indication of a company's true debt burden after considering its liquid assets that could be used to pay off debt.
Key Debt Figures for Verizon
As of September 2024, Verizon Communications held a substantial amount of debt. The total outstanding debt for the company was approximately US$152.5 billion. This figure remained relatively consistent compared to the previous year, indicating a stable debt level for the period.
However, Verizon also maintains a significant cash reserve that can offset a portion of this debt. With US$5.01 billion in cash available, this liquid asset reduces the company's effective debt burden.
By accounting for its cash holdings, Verizon's net debt position stood at approximately US$147.5 billion. This net figure offers a clearer view of the company's financial leverage after considering the cash readily available to cover its obligations.
Breakdown of Verizon's Debt
For clarity, here's a summary of Verizon's debt figures:
Financial Metric | Amount (US$ billions) | As of Date |
---|---|---|
Total Debt | 152.5 | September 2024 |
Cash Holdings | 5.01 | September 2024 |
Net Debt | 147.5 | September 2024 |
Context of Verizon's Debt
The scale of Verizon's debt is typical for a large telecommunications company that requires significant capital investment for infrastructure, network upgrades, and expansion. The consistent debt level from the previous year suggests a stable financial strategy in managing its liabilities.