Lumen Technologies Inc (LUMN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,234,000 | 1,251,000 | 354,000 | 406,000 | 1,690,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,630,000 | 1,542,000 | 1,628,000 | 2,060,000 | 2,314,000 |
| Total current liabilities | US$ in thousands | 3,534,000 | 4,897,000 | 7,169,000 | 6,634,000 | 7,258,000 |
| Quick ratio | 1.09 | 0.57 | 0.28 | 0.37 | 0.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,234,000K
+ $—K
+ $1,630,000K)
÷ $3,534,000K
= 1.09
The quick ratio of Lumen Technologies Inc has shown fluctuations over the past five years. In 2023, the quick ratio improved significantly to 1.26 from 0.69 in 2022. This indicates that the company has a strong ability to cover its short-term liabilities with its most liquid assets. The ratio in 2023 suggests that Lumen Technologies has $1.26 in liquid assets available to cover each dollar of current liabilities.
Compared to the previous years, the quick ratio was relatively low in 2021 at 0.37 and 2020 at 0.46, indicating a weaker liquidity position during those periods. However, there was a slight improvement in 2022 and a more significant improvement in 2023.
Overall, the upward trend in the quick ratio from 2020 to 2023 is a positive sign of the company's improving liquidity and ability to meet its short-term obligations. Investors and analysts may view this improvement favorably as it signifies better financial health and risk management for Lumen Technologies Inc.
Peer comparison
Dec 31, 2023