On October 22, 2024, Verizon Communications Inc. (VZ, Financial) hosted a sell-side analyst meeting, providing a strategic broadband update and engaging in a question and answer session with analysts. This event was accompanied by a press release and an investor presentation, which included both GAAP and non-GAAP financial measures to enhance understanding of the company's financial performance.
Verizon's management emphasized the importance of non-GAAP financial information, which is presented alongside GAAP measures to offer a comprehensive view of the company's financial health. The non-GAAP measures, such as Consolidated EBITDA and Consolidated Adjusted EBITDA, are designed to provide insights into Verizon's profitability and operational performance relative to its competitors.
Consolidated EBITDA is calculated by adding back interest, taxes, and depreciation and amortization expenses to net income. Meanwhile, Consolidated Adjusted EBITDA excludes non-operational items and special items, such as severance charges and business transformation costs, to allow for better comparability with prior periods and trend analysis.
Additionally, Verizon discussed its Net Unsecured Debt to Consolidated Adjusted EBITDA Ratio, a non-GAAP measure that evaluates the company's ability to service its unsecured debt. This ratio is calculated by dividing Net Unsecured Debt by Consolidated Adjusted EBITDA over the last twelve months.
Verizon also highlighted its free cash flow, another non-GAAP measure that provides insights into the company's liquidity. Free cash flow is calculated by subtracting capital expenditures from net cash provided by operating activities, offering a conservative view of cash flow available for discretionary expenditures.
Overall, Verizon's strategic broadband update and financial disclosures aim to provide investors and analysts with a clearer understanding of the company's operational effectiveness and financial strategies.
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