Lumen Technologies Inc (LUMN)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -55,000 | -10,298,000 | -1,548,000 | 2,033,000 | -1,232,000 |
| Total stockholders’ equity | US$ in thousands | 464,000 | 417,000 | 10,437,000 | 11,840,000 | 11,162,000 |
| ROE | -11.85% | -2,469.54% | -14.83% | 17.17% | -11.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-55,000K ÷ $464,000K
= -11.85%
Lumen Technologies Inc's return on equity (ROE) has shown significant fluctuations over the years. As of December 31, 2020, the ROE stood at -11.04%, indicating that the company's net income was insufficient to generate positive returns for shareholders.
However, by December 31, 2021, the ROE improved to 17.17%, reflecting a better utilization of equity to generate profits. This positive trend was short-lived as the ROE dropped to -14.83% by December 31, 2022, suggesting a decrease in profitability relative to the equity invested.
The most concerning observation is the ROE of -2,469.54% as of December 31, 2023, which indicates that the company's net income was extremely low or negative compared to its equity, leading to a substantial negative return for shareholders.
Subsequently, by December 31, 2024, the ROE improved slightly to -11.85%, but still remained in negative territory. This indicates ongoing challenges for Lumen Technologies in effectively utilizing its equity to generate profits for its shareholders.
Overall, the fluctuating trend in ROE signifies volatility in the company's financial performance and its ability to generate returns for equity investors.
Peer comparison
Dec 31, 2024