Lumen Technologies Inc (LUMN)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-10,237,000	-11,277,000	-10,255,000	-1,112,000	-991,000	2,870,000	2,649,000	2,870,000	2,701,000	-186,000	-422,000	-583,000	-782,000	1,775,000	1,705,000	1,694,000	-4,766,000	-7,480,000	-7,561,000	-7,826,000
Revenue (ttm)	US$ in thousands	14,557,000	14,840,000	15,589,000	16,540,000	17,478,000	18,525,000	19,022,000	19,334,000	19,687,000	19,965,000	20,245,000	20,513,000	20,712,000	21,157,000	21,340,000	21,523,000	21,722,000	21,930,000	22,398,000	22,925,000
Pretax margin		-70.32%	-75.99%	-65.78%	-6.72%	-5.67%	15.49%	13.93%	14.84%	13.72%	-0.93%	-2.08%	-2.84%	-3.78%	8.39%	7.99%	7.87%	-21.94%	-34.11%	-33.76%	-34.14%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-10,237,000K ÷ $14,557,000K
= -70.32%

The pretax margin of Lumen Technologies Inc has shown significant fluctuations over the eight quarters analyzed. In Q4 2023 and Q3 2023, the company reported negative pretax margins of -70.32% and -75.99%, indicating that its pre-tax income was significantly lower than its total revenue during those periods. These negative margins may raise concerns about the company's profitability and operational efficiency.

Prior to these quarters, in Q2 2023, Lumen Technologies Inc's pretax margin improved slightly to -65.78%, but still remained negative. The company's performance in Q1 2023 also showed a negative pretax margin of -6.72%, indicating challenges in generating profits before accounting for taxes.

In contrast, the pretax margins were positive in the preceding quarters. In Q4 2022, the company reported a pretax margin of -5.67%, which, though still negative, showed an improvement compared to the later periods. Q3 2022, Q2 2022, and Q1 2022 displayed positive pretax margins of 15.49%, 13.93%, and 14.84%, respectively, reflecting healthier profitability levels for Lumen Technologies Inc during those quarters.

The overall trend in Lumen Technologies Inc's pretax margin indicates volatility in its profitability over the analyzed period, with some quarters performing well and others experiencing significant challenges. Monitoring and addressing the factors contributing to the negative pretax margins will be crucial for the company to sustain and improve its financial performance in the future.