Lumen Technologies Inc (LUMN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,775,000 | 5,451,000 | 11,536,000 | 3,176,000 | 4,768,000 |
| Total current liabilities | US$ in thousands | 3,534,000 | 4,897,000 | 7,169,000 | 6,634,000 | 7,258,000 |
| Current ratio | 1.35 | 1.11 | 1.61 | 0.48 | 0.66 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,775,000K ÷ $3,534,000K
= 1.35
The current ratio of Lumen Technologies Inc has fluctuated over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
In 2023, the current ratio improved to 1.35 compared to the previous year, indicating that the company had $1.35 in current assets for every $1 of current liabilities. This increase suggests a stronger liquidity position and a better ability to meet short-term obligations.
The significant improvement in the current ratio from 2020 to 2021, from 0.48 to 1.61, is noteworthy. This indicates a substantial increase in current assets relative to current liabilities, reflecting better liquidity management or potentially a reduction in short-term obligations.
However, the current ratio was relatively weak in 2020 and 2019, standing at 0.48 and 0.66, respectively. These lower ratios may raise concerns about the company's ability to meet short-term obligations using current assets alone.
Overall, the current ratio of Lumen Technologies Inc has shown variability over the years, with a mix of stronger and weaker liquidity positions. It is essential to monitor this ratio over time to assess the company's ongoing ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023