Lumen Technologies Inc (LUMN)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,108,000 | 13,296,000 | 13,716,000 | 14,109,000 | 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 | 21,596,000 | 21,982,000 |
| Total current assets | US$ in thousands | 4,394,000 | 4,736,000 | 3,554,000 | 3,727,000 | 4,775,000 | 4,646,000 | 4,873,000 | 5,405,000 | 5,420,000 | 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 |
| Total current liabilities | US$ in thousands | 3,639,000 | 3,940,000 | 3,738,000 | 3,816,000 | 3,534,000 | 3,920,000 | 3,963,000 | 4,848,000 | 4,803,000 | 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 |
| Working capital turnover | 17.36 | 16.70 | — | — | 11.73 | 20.44 | 17.13 | 29.69 | 28.33 | 27.77 | 3.17 | 3.16 | 4.51 | 5.87 | — | — | — | — | — | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 revenue. A higher ratio indicates better efficiency in managing working capital.
Looking at the data provided for Lumen Technologies Inc, the working capital turnover ratio was not available for the periods up to December 31, 2021. From September 30, 2021, to December 31, 2023, the ratio fluctuated, with a significant increase from 3.17 on June 30, 2022, to 29.69 on March 31, 2023. This indicates a notable improvement in the company's ability to generate revenue from its working capital during this period.
However, there was a substantial drop in the ratio to 17.13 on June 30, 2023, followed by a gradual increase to 20.44 on September 30, 2023. The ratio decreased further to 11.73 on December 31, 2023, suggesting a decrease in the efficiency of working capital utilization.
In the subsequent periods, the working capital turnover ratio continued to fluctuate, with values ranging from 16.70 on September 30, 2024, to 29.69 on March 31, 2023, indicating that the company's ability to generate revenue from its working capital varied during this time frame.
Overall, the trend in Lumen Technologies Inc's working capital turnover ratio shows fluctuations, indicating varying efficiency in utilizing working capital to generate revenue over the analyzed periods. Further analysis and comparison with industry benchmarks could provide additional insights into the company's working capital management performance.
Peer comparison
Dec 31, 2024