Lumen Technologies Inc (LUMN)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,557,000 | 14,840,000 | 15,589,000 | 16,540,000 | 17,478,000 | 18,525,000 | 19,022,000 | 19,334,000 | 19,687,000 | 19,965,000 | 20,245,000 | 20,513,000 | 20,712,000 | 21,157,000 | 21,340,000 | 21,523,000 | 21,722,000 | 21,930,000 | 22,398,000 | 22,925,000 |
| Property, plant and equipment | US$ in thousands | 19,758,000 | 19,606,000 | 19,432,000 | 19,321,000 | 19,166,000 | 20,713,000 | 20,720,000 | 20,829,000 | 20,895,000 | 20,926,000 | 25,993,000 | 26,091,000 | 26,338,000 | 26,290,000 | 26,079,000 | 25,956,000 | 26,079,000 | 25,874,000 | 25,860,000 | 25,793,000 |
| Fixed asset turnover | 0.74 | 0.76 | 0.80 | 0.86 | 0.91 | 0.89 | 0.92 | 0.93 | 0.94 | 0.95 | 0.78 | 0.79 | 0.79 | 0.80 | 0.82 | 0.83 | 0.83 | 0.85 | 0.87 | 0.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $14,557,000K ÷ $19,758,000K
= 0.74
The fixed asset turnover ratio for Lumen Technologies Inc has been fluctuating over the past 8 quarters, ranging from a low of 0.74 in Q4 2023 to a high of 0.93 in Q1 2022. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
A lower fixed asset turnover ratio suggests that the company is not effectively using its fixed assets to generate sales, which may be a cause for concern as it could indicate underutilization or over-investment in assets. On the other hand, a higher ratio implies that the company is generating more revenue per dollar invested in fixed assets, signaling operational efficiency.
The trend of decreasing fixed asset turnover ratios from 0.93 in Q1 2022 to 0.74 in Q4 2023 might raise questions about the company's asset utilization efficiency. It is essential for stakeholders to dig deeper into the reasons behind this trend to ensure the company is making optimal use of its fixed assets to drive revenue and profitability.
Peer comparison
Dec 31, 2023