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How much debt does Verizon carry?

Published in Corporate Debt 2 mins read

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.