Lumen Technologies Inc (LUMN)
Working capital 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 current assets | US$ in thousands | 4,775,000 | 5,451,000 | 11,536,000 | 3,176,000 | 4,768,000 |
| Total current liabilities | US$ in thousands | 3,534,000 | 4,897,000 | 7,169,000 | 6,634,000 | 7,258,000 |
| Working capital turnover | 11.73 | 31.55 | 4.51 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,557,000K ÷ ($4,775,000K – $3,534,000K)
= 11.73
The working capital turnover ratio for Lumen Technologies Inc has shown significant fluctuations over the past five years. In 2023, the ratio stands at 11.73, indicating that the company generated $11.73 in revenue for every dollar of working capital invested during the year. This represents a notable decrease compared to the previous year, where the ratio was 28.33.
The sharp decline in the working capital turnover from 2022 to 2023 may suggest a less efficient utilization of the company's working capital in generating sales. It is important to further investigate the underlying factors contributing to this decrease in efficiency.
In 2021, the working capital turnover was 4.51, indicating a lower level of efficiency in utilizing working capital compared to 2023. Unfortunately, data for 2020 and 2019 is not available for comparison.
Overall, the trend in the working capital turnover ratios for Lumen Technologies Inc signals fluctuations in the company's ability to generate revenue relative to its working capital in recent years. Further analysis and comparison with industry benchmarks would be beneficial to gain a more comprehensive understanding of the company's working capital management efficiency.
Peer comparison
Dec 31, 2023