Lumen Technologies Inc (LUMN)
Total asset 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 |
| Total assets | US$ in thousands | 34,018,000 | 45,612,000 | 57,993,000 | 59,394,000 | 64,742,000 |
| Total asset turnover | 0.43 | 0.38 | 0.34 | 0.35 | 0.33 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,557,000K ÷ $34,018,000K
= 0.43
The total asset turnover ratio for Lumen Technologies Inc has shown some fluctuation over the past five years. The ratio measures how efficiently the company utilizes its total assets to generate revenue. Lumen's total asset turnover has improved from 0.35 in 2019 to 0.43 in 2023, indicating that the company has become more efficient in generating sales relative to its asset base.
A total asset turnover ratio of 0.43 in 2023 means that for every dollar of assets Lumen had, it generated $0.43 in revenue. This suggests that Lumen has been able to increase its revenue generation capacity in relation to its asset investments.
The improvement in total asset turnover ratio can be a positive signal for investors and stakeholders, as it shows that Lumen is effectively utilizing its assets to drive sales growth. However, it is important to continue monitoring this ratio to ensure that the efficiency of asset utilization remains consistent over time.
Peer comparison
Dec 31, 2023