Lumen Technologies Inc (LUMN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -230,000 | -10,237,000 | -991,000 | 2,701,000 | -782,000 |
| Revenue | US$ in thousands | 13,108,000 | 14,557,000 | 17,478,000 | 19,687,000 | 20,712,000 |
| Pretax margin | -1.75% | -70.32% | -5.67% | 13.72% | -3.78% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-230,000K ÷ $13,108,000K
= -1.75%
Lumen Technologies Inc's pretax margin has shown significant fluctuations over the past five years.
In December 2020, the company reported a negative pretax margin of -3.78%, indicating that its pre-tax profits were insufficient to cover operating expenses. However, by December 2021, the pretax margin had improved significantly to 13.72%, reflecting a strong performance in generating profits before accounting for taxes.
Unfortunately, this positive trend was short-lived as the pretax margin declined sharply in December 2022 to -5.67%, suggesting that the company may have faced challenges in managing its expenses. The situation deteriorated even further by December 2023, with a staggering pretax margin of -70.32%, indicating severe financial distress and potential operational inefficiencies.
By December 2024, there was a slight improvement in the pretax margin to -1.75%, but the company still operated at a loss before taxes. Overall, the fluctuating pretax margins reflect the company's struggle to maintain profitability and operational efficiency during this period. Further analysis of the company's financial performance and strategic decisions would be required to understand the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2024