Lumen Technologies Inc (LUMN)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,194,000 | 8,976,000 | 9,134,000 | 8,478,000 | 7,895,000 | 7,233,000 | 7,382,000 | 7,700,000 | 7,868,000 | 8,128,000 | 8,280,000 | 8,337,000 | 8,488,000 | 8,633,000 | 8,718,000 | 8,835,000 | 8,934,000 | 9,224,000 | 9,578,000 | 9,792,000 |
| Inventory | US$ in thousands | 146,000 | 173,000 | 184,000 | 193,000 | 209,000 | 227,000 | 205,000 | 223,000 | 236,000 | 179,000 | 151,000 | 128,000 | 96,000 | 103,000 | 114,000 | 100,000 | 105,000 | 112,000 | 122,000 | 119,000 |
| Inventory turnover | 56.12 | 51.88 | 49.64 | 43.93 | 37.78 | 31.86 | 36.01 | 34.53 | 33.34 | 45.41 | 54.83 | 65.13 | 88.42 | 83.82 | 76.47 | 88.35 | 85.09 | 82.36 | 78.51 | 82.29 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,194,000K ÷ $146,000K
= 56.12
Lumen Technologies Inc's inventory turnover ratio has shown fluctuations over the past several periods. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory during a specific period.
Between March 31, 2020, and December 31, 2021, the inventory turnover generally increased from 82.29 to 88.42, indicating an improvement in inventory management efficiency during this period. However, from March 31, 2022, to December 31, 2024, the inventory turnover ratio declined significantly, reaching a low of 33.34 on December 31, 2022, before gradually increasing again to 56.12 by the end of 2024.
The declining trend in inventory turnover from 2022 onwards could suggest potential issues such as overstocking, slow-moving inventory, or declining sales relative to inventory levels. A low inventory turnover ratio may indicate inefficiencies in inventory management, potential obsolescence issues, or a mismatch between supply and demand.
Further analysis and comparison with industry averages or historical data can provide more insights into the reasons behind the fluctuations in Lumen Technologies Inc's inventory turnover and help evaluate the effectiveness of the company's inventory management strategies.
Peer comparison
Dec 31, 2024
Dec 31, 2024