Lumen Technologies Inc (LUMN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,234,000 | 311,000 | 411,000 | 1,148,000 | 1,251,000 | 252,000 | 360,000 | 366,000 | 354,000 | 635,000 | 935,000 | 486,000 | 406,000 | 526,000 | 1,763,000 | 1,564,000 | 1,690,000 | 1,404,000 | 410,000 | 441,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.63 | 0.08 | 0.10 | 0.24 | 0.26 | 0.03 | 0.06 | 0.06 | 0.05 | 0.08 | 0.14 | 0.06 | 0.06 | 0.09 | 0.24 | 0.27 | 0.23 | 0.21 | 0.06 | 0.08 |
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 shown variability over the past eight quarters, ranging from a low of 0.11 in Q3 2022 to a high of 0.89 in Q4 2023. A higher cash ratio indicates a company has more cash and cash equivalents relative to its current liabilities, suggesting a better ability to cover short-term obligations.
The significant improvement in the cash ratio from Q3 2023 to Q4 2023, rising from 0.27 to 0.89, indicates an increase in the company's liquidity position during that quarter. This may be attributed to higher cash and cash equivalent balances or a reduction in current liabilities.
While the cash ratios in Q2 and Q3 of 2022 were lower compared to other quarters, they started to improve from Q4 2022 onwards. This positive trend in liquidity ratios indicates a strengthening liquidity position for Lumen Technologies Inc over time.
Overall, the cash ratio analysis highlights the company's ability to meet its short-term liabilities with available cash and cash equivalents. However, it is also important to consider other liquidity and solvency ratios to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023