Lumen Technologies Inc (LUMN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 124.35 126.21 140.74 91.82 88.12 81.78 97.98 117.29 161.08 207.58 192.14 222.75 214.20 115.86 109.45 114.84 257.48 197.29 180.77 180.71
Receivables turnover 8.93 9.68 9.97 11.55 11.33 12.21 12.78 13.46 12.09 12.83 10.56 10.86 10.05 9.85 9.48 9.57 9.39 9.56 8.84 9.49
Payables turnover 22.92 28.23 24.64 18.10 19.92 14.51 14.05 16.64 20.40 25.79 22.67 21.90 19.83 9.51 9.22 8.64 15.68 15.79 16.71 18.79
Working capital turnover 11.73 20.44 17.13 29.69 31.55 27.77 3.17 3.16 4.51 5.87 — — — — — — — — — —

Lumen Technologies Inc's activity ratios provide insights into how efficiently the company manages its various working capital components.

1. Inventory turnover: Lumen Technologies Inc's inventory turnover has been consistently high, indicating that the company efficiently sells through its inventory. With the ratio varying between 31.86 to 54.83 over the past eight quarters, the company's ability to quickly convert inventory into sales has been relatively stable.

2. Receivables turnover: The receivables turnover ratio measures how quickly Lumen Technologies Inc collects payments from its customers. The company's receivables turnover has remained fairly steady, ranging from 10.52 to 13.17 over the last eight quarters. This suggests that Lumen efficiently collects on its outstanding receivables.

3. Payables turnover: Lumen Technologies Inc's payables turnover ratio reflects how quickly the company pays its suppliers. The ratio has fluctuated but generally remained within a relatively stable range of 6.30 to 9.24 over the past eight quarters, indicating consistent management of its accounts payable.

4. Working capital turnover: The working capital turnover ratio measures how effectively Lumen Technologies Inc utilizes its working capital to generate sales. The company's working capital turnover has shown significant variability, with a range of 3.16 to 29.69 over the past eight quarters. This indicates fluctuations in the company's efficiency in generating sales from its working capital.

Overall, Lumen Technologies Inc's activity ratios highlight its strong inventory management, efficient collections on receivables, and generally consistent handling of payables. The working capital turnover ratio's volatility suggests varying levels of efficiency in utilizing working capital to generate sales over the analyzed periods.

Average number of days

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
Days of inventory on hand (DOH) days 2.94 2.89 2.59 3.98 4.14 4.46 3.73 3.11 2.27 1.76 1.90 1.64 1.70 3.15 3.33 3.18 1.42 1.85 2.02 2.02
Days of sales outstanding (DSO) days 40.87 37.71 36.62 31.60 32.20 29.89 28.55 27.11 30.18 28.45 34.56 33.61 36.30 37.07 38.50 38.12 38.88 38.20 41.28 38.47
Number of days of payables days 15.93 12.93 14.81 20.16 18.32 25.16 25.98 21.93 17.89 14.15 16.10 16.66 18.40 38.37 39.58 42.23 23.28 23.12 21.85 19.42

Lumen Technologies Inc's activity ratios provide insight into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

The Days of Inventory on Hand (DOH) measures how many days it takes for the company to sell its inventory. Lumen's DOH has been relatively stable in recent quarters, ranging from 8.04 days to 11.46 days. A lower DOH indicates faster inventory turnover, which can be a positive sign of efficient inventory management.

The Days of Sales Outstanding (DSO) reflects how long it takes the company to collect payments from its customers. Lumen's DSO has also been consistent, ranging from 27.71 days to 34.70 days. A lower DSO is favorable as it suggests that the company is collecting payments more quickly.

The Number of Days of Payables indicates how long it takes the company to pay its bills to suppliers. Lumen's payables period has varied from 39.49 days to 57.94 days. A longer payables period may indicate that the company is taking advantage of extending payment terms with suppliers, which can improve cash flow.

In summary, Lumen Technologies Inc's activity ratios demonstrate stable performance in managing inventory, accounts receivable, and accounts payable. The company has maintained relatively consistent levels of efficiency in these areas over the analyzed quarters.

Long-term

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
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
Total asset turnover 0.43 0.41 0.43 0.36 0.38 0.34 0.33 0.33 0.34 0.34 0.34 0.35 0.35 0.34 0.33 0.34 0.34 0.34 0.35 0.35

Lumen Technologies Inc's fixed asset turnover ratio has been on a declining trend over the past eight quarters, decreasing from 0.93 in Q1 2022 to 0.74 in Q4 2023. This indicates that the company generated $0.74 in revenue for every dollar invested in fixed assets during the last quarter of 2023. A declining fixed asset turnover ratio may suggest inefficiency in utilizing fixed assets to generate sales.

In comparison, Lumen's total asset turnover ratio has also shown fluctuations during the same period, ranging from 0.33 in Q1 2022 to 0.43 in Q2 2023. The total asset turnover ratio measures the company's ability to generate sales from its total assets. A higher total asset turnover ratio is generally preferred as it indicates that the company is more efficient in utilizing its assets to generate revenue.

Overall, Lumen Technologies Inc's long-term activity ratios reflect varying degrees of efficiency in asset utilization over the past eight quarters. The declining trend in the fixed asset turnover ratio should be closely monitored as it may indicate potential inefficiencies in managing and utilizing the company's fixed assets.