Lumen Technologies Inc (LUMN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	34,826,000	20,870,000	15,517,000	22,591,000	31,644,000
Inventory	US$ in thousands	209,000	236,000	96,000	105,000	105,000
Inventory turnover		166.63	88.43	161.64	215.15	301.37

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $34,826,000K ÷ $209,000K
= 166.63

Inventory turnover measures how efficiently a company manages its inventory by assessing how many times the company sells and replaces its inventory during a specific period. Looking at Lumen Technologies Inc's inventory turnover figures over the past five years, we observe that the company has consistently maintained a high inventory turnover ratio, indicating strong inventory management practices.

With a significant inventory turnover ratio for each year, ranging from 33.34 to 95.97, Lumen Technologies Inc demonstrates the ability to quickly sell and replenish its inventory levels. The high turnover suggests efficient inventory control, effective sales strategies, and a streamlined supply chain process.

The declining trend in inventory turnover from 2021 to 2023 may indicate a potential shift in the company's inventory management approach. It is essential for investors and analysts to further investigate the reasons behind this trend and assess its impact on the company's operations and financial performance.

Overall, Lumen Technologies Inc's consistently high inventory turnover ratios reflect efficient operations and effective management of inventory levels, which is a positive indicator of the company's operational effectiveness and financial health.