Lumen Technologies Inc (LUMN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | -20,269,000 | -3,392,000 | 4,170,000 | -1,879,000 | -9,243,000 |
| Revenue | US$ in thousands | 14,557,000 | 17,478,000 | 19,687,000 | 20,712,000 | 21,458,000 |
| Gross profit margin | -139.24% | -19.41% | 21.18% | -9.07% | -43.07% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $-20,269,000K ÷ $14,557,000K
= -139.24%
Over the past five years, Lumen Technologies Inc's gross profit margin has shown a downward trend. In 2019, the gross profit margin was 55.02%, which increased to 56.87% in 2020 before declining to 56.89% in 2021 and further dropping to 54.98% in 2022 and 50.92% in 2023.
This decreasing trend in gross profit margin indicates that the company may be facing challenges in controlling its direct costs of sales relative to its revenues. A declining gross profit margin could suggest that Lumen Technologies Inc might be experiencing pressure on pricing, facing increased competition, or dealing with rising production costs.
It is important for the company to closely monitor and analyze the factors contributing to the decline in gross profit margin to identify potential areas for improvement, such as cost management, pricing strategies, or operational efficiencies, in order to enhance profitability and maintain competitiveness in the market.
Peer comparison
Dec 31, 2023