Lumen Technologies Inc (LUMN)

Short-term

Turnover ratios

Lumen Technologies Inc's inventory turnover ratios have shown a fluctuating trend over the years, with values ranging from 33.34 to 88.42. The increase in the turnover ratio from 2020 to 2021 indicates a more efficient management of inventory, potentially reducing holding costs and improving cash flow. However, there was a slight decrease in inventory turnover in the subsequent years. Ensuring a balance between a high turnover rate and maintaining adequate inventory levels is important for the company's operations.

The receivables turnover ratio data indicates that there is no information available for the years presented. The absence of receivables turnover data makes it challenging to assess the company's effectiveness in collecting outstanding payments from its customers. Monitoring receivables turnover is crucial as it reflects the company's credit policies, collection efficiency, and overall liquidity.

Similarly, there is no information provided for the payables turnover ratio, which would have offered insight into the company's payment practices with suppliers. Payables turnover reflects how quickly the company is paying its suppliers and managing its trade credit relationships. Understanding this ratio is vital for evaluating cash flow management and vendor relationships.

The working capital turnover ratios reveal a significant increase in 2022 compared to the prior year, indicating a more efficient use of the company's working capital to generate revenue. This spike in efficiency suggests improved operational performance and effective utilization of resources. Subsequent years also show relatively high turnover rates, underscoring the company's ability to leverage its working capital effectively to drive business activities.

In conclusion, while Lumen Technologies Inc has shown positive trends in inventory turnover and working capital turnover, the lack of data for receivables turnover and payables turnover poses limitations in assessing all aspects of the company's activity ratios comprehensively. Monitoring these ratios over time can provide valuable insights into the company's operational efficiency, liquidity management, and overall financial performance.

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Average number of days

Lumen Technologies Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the average number of days it takes for the company to sell or use its inventory. A lower DOH is generally preferred as it suggests faster inventory turnover.
- Lumen's DOH has shown a decreasing trend from 2022 to 2024, dropping from 10.95 days to 7.95 days. This indicates that the company has been able to improve its inventory management efficiency over the years.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include any values for DSO, which signifies the average number of days it takes for the company to collect payment after making a sale. Without this information, it is challenging to assess Lumen's effectiveness in collecting receivables.

3. Number of Days of Payables:
- Similarly, the data does not include any values for the number of days of payables, which indicates the average number of days it takes for the company to pay its suppliers. Without this information, it is difficult to evaluate Lumen's payment practices and relationships with its suppliers.

In conclusion, while the information on Lumen Technologies Inc's DOH shows an improvement in inventory management efficiency over the years, the lack of data on DSO and the number of days of payables limits a comprehensive analysis of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio for Lumen Technologies Inc indicates the efficiency with which the company generates revenue from its fixed assets. The trend over the years shows a slight improvement from 0.79 in 2020 to 0.94 in 2021, before decreasing to 0.91 in 2022. The ratio is not available for 2023 and 2024.

On the other hand, the total asset turnover ratio measures the company's ability to generate sales from all its assets. The trend shows a relatively stable performance with the ratio hovering around 0.34 to 0.43 from 2020 to 2024. In 2023, there is a notable increase to 0.43 before dropping slightly to 0.39 in 2024.

Overall, Lumen Technologies Inc's long-term activity ratios suggest varying efficiencies in utilizing its assets to generate revenue over the years, with the company showing mixed performance in converting assets into sales.