Lumen Technologies Inc (LUMN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,557,000 | 17,478,000 | 19,687,000 | 20,712,000 | 21,458,000 |
| Receivables | US$ in thousands | 1,630,000 | 1,542,000 | 1,628,000 | 2,060,000 | 2,314,000 |
| Receivables turnover | 8.93 | 11.33 | 12.09 | 10.05 | 9.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,557,000K ÷ $1,630,000K
= 8.93
The receivables turnover ratio for Lumen Technologies Inc has been relatively stable over the past five years, ranging between 9.92 and 11.89. This ratio measures the efficiency with which the company collects cash from its credit sales. A higher ratio indicates that the company is collecting its accounts receivable more quickly, which is generally favorable.
The slight fluctuations in the ratio over the years suggest that Lumen Technologies has been effective in managing its accounts receivable and collecting payments from customers in a timely manner. The consistent values around 10 to 12 times indicate that the company is able to convert its accounts receivable into cash multiple times a year, which can be a positive sign of liquidity and operational efficiency.
Overall, the stable and relatively high receivables turnover ratio for Lumen Technologies Inc signifies good credit management practices and efficient collection efforts, reflecting positively on the company's financial health and operational performance in managing its accounts receivable.
Peer comparison
Dec 31, 2023