Lumen Technologies Inc (LUMN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | -78.54% | -93.05% | -85.08% | -23.80% | -18.98% | 20.98% | 22.22% | 22.35% | 21.45% | -7.09% | -8.19% | -8.59% | -8.59% | 38.67% | 38.63% | 38.64% | -21.33% | -20.16% | -19.98% | -20.44% |
| Operating profit margin | -65.84% | -74.74% | -63.71% | -3.62% | 0.54% | 24.51% | 22.54% | 22.66% | 21.77% | 6.59% | 5.30% | 4.72% | 4.64% | 17.10% | 17.24% | 17.44% | -12.55% | -24.69% | -24.42% | -24.77% |
| 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% |
| Net profit margin | -70.74% | -76.63% | -68.74% | -9.89% | -8.86% | 10.95% | 10.49% | 11.16% | 10.33% | -3.83% | -4.65% | -5.22% | -5.95% | 6.05% | 5.70% | 5.62% | -24.26% | -36.04% | -35.42% | -34.95% |
Lumen Technologies Inc's profitability ratios have shown a declining trend over the past eight quarters. The gross profit margin has decreased gradually from 54.98% in Q4 2022 to 50.92% in Q4 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has declined from 18.84% in Q4 2022 to 8.45% in Q4 2023, reflecting a decrease in profitability from core operations. This trend suggests that the company may be facing challenges in controlling operating expenses relative to revenue.
The pretax margin has also deteriorated significantly, with negative margins in Q1 and Q4 2023, indicating that the company's income before taxes has been insufficient to cover operating costs and interest expenses. This could be a result of factors such as declining revenue, increased expenses, or one-time charges impacting profitability.
Furthermore, the net profit margin has shown a consistent decrease, with negative margins in Q1 and Q4 2023. This suggests that the company's bottom line has been severely impacted, reflecting challenges in generating profits after accounting for all expenses, including interest and taxes.
Overall, the trend in Lumen Technologies Inc's profitability ratios indicates a declining financial performance in terms of both gross and operating profitability, leading to negative pretax and net profit margins. This analysis highlights the company's challenges in sustaining profitability and its need to improve efficiency and cost management to enhance overall financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -28.17% | -30.88% | -27.46% | -1.31% | 0.21% | 8.28% | 7.43% | 7.55% | 7.39% | 2.26% | 1.82% | 1.65% | 1.62% | 5.78% | 5.73% | 5.86% | -4.21% | -8.36% | -8.48% | -8.77% |
| Return on assets (ROA) | -30.27% | -31.66% | -29.63% | -3.59% | -3.39% | 3.70% | 3.46% | 3.72% | 3.51% | -1.31% | -1.60% | -1.82% | -2.07% | 2.04% | 1.89% | 1.89% | -8.14% | -12.21% | -12.30% | -12.37% |
| Return on total capital | -45.12% | -46.41% | -41.02% | 0.48% | 1.11% | 11.45% | 33.45% | 35.46% | 10.43% | 12.16% | 9.88% | 9.07% | 7.94% | 25.79% | 26.36% | 27.39% | -20.38% | -39.52% | -39.67% | -41.86% |
| Return on equity (ROE) | -2,469.54% | -512.48% | -469.18% | -14.88% | -14.92% | 16.13% | 16.33% | 17.56% | 17.17% | -6.83% | -8.05% | -9.48% | -11.04% | 9.35% | 9.03% | 9.10% | -39.12% | -57.80% | -58.03% | -59.25% |
Lumen Technologies Inc's profitability ratios have shown varied trends over the past eight quarters.
1. Operating return on assets (Operating ROA) has ranged from 3.62% to 7.55% during this period. The company's ability to generate operating income from its assets has fluctuated but has generally remained positive, indicating operational efficiency.
2. Return on assets (ROA) has been negative for most quarters, reaching a low of -31.66%. This suggests that the company's net income has not been sufficient to cover its total assets, possibly due to significant expenses or impairments impacting profitability.
3. Return on total capital has fluctuated between 6.03% and 10.73%, reflecting the company's ability to generate returns for both equity and debt holders. The trend shows some variability but generally indicates a positive return on the capital employed in the business.
4. Return on equity (ROE) has been highly negative, with values as low as -2,469.54%. This indicates that the company has been generating losses relative to shareholders' equity, which could be concerning for investors.
Overall, Lumen Technologies Inc's profitability ratios reveal a mixed performance, with some metrics indicating operational efficiency and returns on capital, while others, such as ROA and ROE, point to challenges in generating profits relative to assets and equity. Monitoring these ratios over time can provide insights into the company's financial health and performance.