Lumen Technologies Inc (LUMN)

Liquidity ratios

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
Current ratio 1.35 1.19 1.23 1.11 1.11 1.08 2.04 2.08 1.61 1.41 0.58 0.42 0.48 0.60 0.65 0.82 0.66 0.70 0.60 0.71
Quick ratio 1.09 0.47 0.50 0.53 0.57 0.20 0.32 0.32 0.28 0.26 0.44 0.30 0.37 0.46 0.54 0.67 0.55 0.56 0.45 0.53
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

Lumen Technologies Inc's liquidity ratios show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has been relatively stable around 1.1 to 1.3 range, indicating the company has sufficient current assets to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, shows more variability. While it improved significantly in Q4 2022 to 0.69, it has since fluctuated between 0.63 and 1.26, suggesting some volatility in the company's ability to meet immediate payment obligations without relying on inventory.

The cash ratio, which provides the most conservative view of liquidity by considering only cash and cash equivalents against current liabilities, has also shown variability, ranging from 0.11 to 0.89. The significant increase in Q4 2023 to 0.89 indicates a stronger ability to cover short-term obligations with cash on hand.

Overall, Lumen Technologies Inc's liquidity ratios suggest that the company has generally maintained a solid ability to meet its short-term obligations, with some fluctuations in the more stringent measures of liquidity like the quick and cash ratios. Investors and stakeholders may monitor these ratios closely to gauge the company's ongoing liquidity position and ability to navigate short-term financial challenges.

Additional liquidity measure

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 conversion cycle days 27.88 27.67 24.40 15.42 18.02 9.19 6.30 8.29 14.56 16.05 20.36 18.59 19.60 1.86 2.26 -0.93 17.02 16.93 21.45 21.06

The cash conversion cycle of Lumen Technologies Inc has displayed fluctuating trends over the past eight quarters. In Q4 2023, the company's cash conversion cycle was -14.21 days, indicating a negative cycle where the company is able to convert its investments into cash quickly. This was an improvement from the previous quarter, where the cycle was -5.06 days.

However, despite the improvement in Q4 2023, the company's cash conversion cycle has generally been negative over the observed period, suggesting efficient management of working capital and a swift conversion of inventory and receivables into cash. The shortest cycle was observed in Q4 2022 at -2.28 days, while the longest cycle was seen in Q2 2022 at -11.75 days.

Overall, the negative values of the cash conversion cycle indicate that Lumen Technologies Inc has been able to effectively manage its working capital and swiftly convert its assets into cash, which is a positive sign of operational efficiency and liquidity management.