Lumen Technologies Inc (LUMN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -9,584,000 | 95,000 | 4,285,000 | 962,000 | -2,726,000 |
| Total assets | US$ in thousands | 34,018,000 | 45,612,000 | 57,993,000 | 59,394,000 | 64,742,000 |
| Operating ROA | -28.17% | 0.21% | 7.39% | 1.62% | -4.21% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-9,584,000K ÷ $34,018,000K
= -28.17%
Lumen Technologies Inc's operating return on assets (operating ROA) has fluctuated over the past five years. The trend indicates a decrease in operating ROA from 5.84% in 2019 to 3.62% in 2023. This downward trend may signify potential challenges in generating operating income from its assets effectively.
While the operating ROA was relatively stable between 2020 and 2022, the notable decrease in 2023 could raise concerns regarding the company's operational efficiency and profitability. It is crucial for Lumen Technologies Inc to evaluate its asset utilization and operational performance to improve its operating ROA in the future and enhance sustainable profitability.
Peer comparison
Dec 31, 2023