Lumen Technologies Inc (LUMN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -10,237,000 | -991,000 | 2,701,000 | -782,000 | -4,766,000 |
| Revenue | US$ in thousands | 14,557,000 | 17,478,000 | 19,687,000 | 20,712,000 | 21,458,000 |
| Pretax margin | -70.32% | -5.67% | 13.72% | -3.78% | -22.21% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-10,237,000K ÷ $14,557,000K
= -70.32%
The pretax margin of Lumen Technologies Inc has been volatile over the past five years, ranging from -70.32% in 2023 to 13.72% in 2021. The negative pretax margins in 2020, 2019, and 2023 indicate that the company's pre-tax earnings were insufficient to cover its operating expenses and taxes during these years.
In 2021, Lumen Technologies Inc achieved a pretax margin of 13.72%, indicating that it generated a profit before taxes that amounted to 13.72% of its total revenue. This could be attributed to effective cost management, higher revenue generation, or a combination of both.
It is important for the company to consistently work towards improving and sustaining positive pretax margins to ensure long-term profitability and financial stability.
Peer comparison
Dec 31, 2023