Lumen Technologies Inc (LUMN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,889,000 | 2,234,000 | 1,251,000 | 354,000 | 406,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,639,000 | 3,534,000 | 4,803,000 | 7,169,000 | 6,634,000 |
| Cash ratio | 0.52 | 0.63 | 0.26 | 0.05 | 0.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,889,000K
+ $—K)
÷ $3,639,000K
= 0.52
The cash ratio of Lumen Technologies Inc has shown fluctuations over the years according to the data provided. As of December 31, 2020, the cash ratio was 0.06, indicating that the company had $0.06 in cash and cash equivalents for every $1 of current liabilities.
By December 31, 2021, the cash ratio decreased slightly to 0.05, suggesting a slight decline in the company's ability to cover its short-term liabilities with its available cash on hand.
However, there was a substantial improvement in the cash ratio by December 31, 2022, where the ratio increased to 0.26. This signifies a significant enhancement in Lumen Technologies Inc's liquidity position and its ability to meet its short-term obligations using its cash reserves.
The trend continued to improve over the following years, with the cash ratio further increasing to 0.63 by December 31, 2023, and then slightly decreasing to 0.52 by December 31, 2024. Despite the slight drop in the cash ratio in 2024, the company still maintained a strong liquidity position overall.
Overall, Lumen Technologies Inc's cash ratio has displayed variability, with fluctuations observed over the years. However, the general trend demonstrates an improvement in the company's ability to cover its short-term liabilities with its available cash and cash equivalents, indicating a strengthened liquidity position.
Peer comparison
Dec 31, 2024