Lumen Technologies Inc (LUMN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,557,000 | 14,840,000 | 15,589,000 | 16,540,000 | 17,478,000 | 18,525,000 | 19,022,000 | 19,334,000 | 19,687,000 | 19,965,000 | 20,245,000 | 20,513,000 | 20,712,000 | 21,157,000 | 21,340,000 | 21,523,000 | 21,722,000 | 21,930,000 | 22,398,000 | 22,925,000 |
| Total current assets | US$ in thousands | 4,775,000 | 4,646,000 | 4,873,000 | 5,405,000 | 5,451,000 | 9,382,000 | 11,790,000 | 11,772,000 | 11,536,000 | 11,701,000 | 3,746,000 | 3,293,000 | 3,176,000 | 3,504,000 | 4,858,000 | 4,690,000 | 4,768,000 | 4,589,000 | 3,878,000 | 3,820,000 |
| Total current liabilities | US$ in thousands | 3,534,000 | 3,920,000 | 3,963,000 | 4,848,000 | 4,897,000 | 8,715,000 | 5,781,000 | 5,655,000 | 7,169,000 | 8,300,000 | 6,510,000 | 7,787,000 | 6,634,000 | 5,879,000 | 7,472,000 | 5,703,000 | 7,258,000 | 6,589,000 | 6,495,000 | 5,373,000 |
| Working capital turnover | 11.73 | 20.44 | 17.13 | 29.69 | 31.55 | 27.77 | 3.17 | 3.16 | 4.51 | 5.87 | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,557,000K ÷ ($4,775,000K – $3,534,000K)
= 11.73
Lumen Technologies Inc's working capital turnover has exhibited fluctuations over the recent quarters, ranging from a low of 3.16 in Q1 2022 to a high of 29.69 in Q1 2023. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. A higher ratio indicates that the company is efficiently using its working capital to generate sales.
The significant increase in working capital turnover from Q1 2023 to Q4 2023 suggests that the company has become more efficient in generating revenue from its working capital. This improvement could be attributed to better management of inventory, receivables, and payables, leading to a faster turnover of resources and increased sales.
Conversely, the sharp decline in working capital turnover in Q2 2022 compared to the previous quarters raises concerns about the company's efficiency in utilizing its working capital during that period. It may indicate issues such as inefficient inventory management, slow collection of receivables, or excessive holding of cash.
Overall, fluctuations in Lumen Technologies Inc's working capital turnover ratio reflect changes in the company's working capital management efficiency and operational performance. Further examination of the underlying factors driving these fluctuations can provide valuable insights into the company's financial health and operating effectiveness.
Peer comparison
Dec 31, 2023