Lumen Technologies Inc (LUMN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -10,298,000 | -1,548,000 | 2,033,000 | -1,232,000 | -5,269,000 |
| Total assets | US$ in thousands | 34,018,000 | 45,612,000 | 57,993,000 | 59,394,000 | 64,742,000 |
| ROA | -30.27% | -3.39% | 3.51% | -2.07% | -8.14% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-10,298,000K ÷ $34,018,000K
= -30.27%
Lumen Technologies Inc's return on assets (ROA) has been quite volatile over the past five years. The ROA was negative in three out of the five years, with particularly significant negative values in 2023 and 2019. This indicates that the company's net income generated from its assets was insufficient to cover the total assets in those years, reflecting potential operational challenges and inefficiencies.
The positive ROA values in 2021 and 2022 show a turnaround, indicating improved profitability and efficiency in asset utilization during those years. However, the negative ROA in 2020 suggests a dip in performance or profitability.
Overall, Lumen Technologies Inc's ROA trend signals inconsistency in generating returns from its assets, highlighting the need for continuous monitoring and potential strategic shifts to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023