Lumen Technologies Inc (LUMN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,889,000 | 2,234,000 | 1,251,000 | 354,000 | 406,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,639,000 | 3,534,000 | 4,803,000 | 7,169,000 | 6,634,000 |
| Quick ratio | 0.52 | 0.63 | 0.26 | 0.05 | 0.06 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,889,000K
+ $—K
+ $—K)
÷ $3,639,000K
= 0.52
The quick ratio of Lumen Technologies Inc has exhibited fluctuations over the years. In December 2020 and 2021, the quick ratio was below 1, indicating a potential liquidity concern as the company may have had difficulty meeting its short-term obligations with its most liquid assets. However, in December 2022, the quick ratio improved significantly to 0.26, showing an increase in the company's ability to cover its current liabilities with its quick assets.
By December 2023 and 2024, the quick ratio continued to show improvement, reaching 0.63 and 0.52, respectively. These ratios indicate that Lumen Technologies Inc had a higher level of liquid assets relative to its current liabilities, suggesting a strengthened liquidity position during those periods.
Overall, the upward trend in the quick ratio from 2020 to 2024 reflects an improvement in Lumen Technologies Inc's ability to meet short-term obligations using its quick assets. However, it is essential to monitor this ratio over time to ensure continued liquidity stability.
Peer comparison
Dec 31, 2024