Lumen Technologies Inc (LUMN)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	13,108,000	14,557,000	17,478,000	19,687,000	20,712,000
Total current assets	US$ in thousands	4,394,000	4,775,000	5,420,000	11,536,000	3,176,000
Total current liabilities	US$ in thousands	3,639,000	3,534,000	4,803,000	7,169,000	6,634,000
Working capital turnover		17.36	11.73	28.33	4.51	—

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,108,000K ÷ ($4,394,000K – $3,639,000K)
= 17.36

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. In the case of Lumen Technologies Inc, the working capital turnover ratio has shown a significant fluctuation over the years.

In 2021, the ratio was 4.51, indicating that Lumen was able to generate $4.51 in sales revenue for every dollar of working capital invested. This suggests that the company was effectively utilizing its working capital to drive sales.

The ratio then experienced a sharp increase in 2022 to 28.33, reflecting a substantial improvement in efficiency in converting working capital into sales. This spike could be attributed to better management of working capital components like current assets and liabilities.

In the following years, the working capital turnover ratio continued to show variability, with values of 11.73 in 2023 and 17.36 in 2024. These fluctuations indicate changing dynamics in how efficiently Lumen is utilizing its working capital to generate revenues during those periods.

Overall, the trend in Lumen Technologies Inc's working capital turnover ratio demonstrates a mix of efficiency and variability in how effectively the company is managing its working capital resources to drive sales. Further analysis would be needed to understand the factors influencing these fluctuations and to assess the company's overall working capital management strategy.