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