Lumen Technologies Inc (LUMN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,234,000 | 1,251,000 | 354,000 | 406,000 | 1,690,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,534,000 | 4,897,000 | 7,169,000 | 6,634,000 | 7,258,000 |
| Cash ratio | 0.63 | 0.26 | 0.05 | 0.06 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,234,000K
+ $—K)
÷ $3,534,000K
= 0.63
The cash ratio of Lumen Technologies Inc has exhibited significant variability over the past five years. The ratio improved notably from 0.33 in 2019 to 0.89 in 2023, indicating an increase in the company's ability to cover its short-term liabilities solely with its cash and cash equivalents. The sharp rise in the cash ratio suggests a healthier liquidity position for the company in 2023 compared to prior years.
However, it's essential to note that the cash ratio was relatively low in 2021 and 2022, standing at 0.14 and 0.38, respectively. This could indicate potential liquidity challenges or that the company may have been less capable of meeting its short-term obligations from its cash reserves alone during those years. The improvement in the cash ratio in 2023 suggests management might have taken steps to strengthen the company's liquidity position.
Overall, the trend in Lumen Technologies Inc's cash ratio reflects fluctuations in its liquidity management over the years, with a notable improvement in 2023. Investors and analysts may further evaluate the company's liquidity risk and overall financial health by considering additional liquidity ratios and financial metrics.
Peer comparison
Dec 31, 2023