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.