Lumen Technologies Inc (LUMN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	13,108,000	7,413,000	9,610,000	11,199,000	11,778,000
Revenue	US$ in thousands	13,108,000	14,557,000	17,478,000	19,687,000	20,712,000
Gross profit margin		100.00%	50.92%	54.98%	56.89%	56.87%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $13,108,000K ÷ $13,108,000K
= 100.00%

Based on the provided data, Lumen Technologies Inc's gross profit margin has shown some fluctuations over the years. The company's gross profit margin was relatively stable around the mid-50% range in 2020 and 2021, with figures of 56.87% and 56.89%, respectively. However, there was a slight decrease to 54.98% by the end of 2022, indicating a potential decline in the profitability of the company's core operations.

Subsequently, there was a more significant drop in the gross profit margin to 50.92% by December 31, 2023. This decline may be attributed to various factors such as changes in pricing strategies, increased costs of goods sold, or competitive pressures in the market affecting the company's ability to maintain its margins.

Notably, there was a sudden spike to 100.00% by the end of 2024, which seems unusual and potentially erroneous. An abrupt increase to 100% may indicate a distortion in the data or an isolated event that significantly skewed the gross profit margin calculation. Further investigation would be required to understand the reasons behind this anomalous figure.

In conclusion, while Lumen Technologies Inc has historically maintained a relatively healthy gross profit margin, the recent downward trend and sudden spike in 2024 raise questions about the company's ability to consistently generate profits from its core operations. More detailed analysis and context are necessary to fully assess the factors impacting the company's gross profit margin dynamics.