Lumen Technologies Inc (LUMN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 417,000 | 10,374,000 | 11,840,000 | 11,162,000 | 13,470,000 |
| ROE | -2,469.54% | -14.92% | 17.17% | -11.04% | -39.12% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-10,298,000K ÷ $417,000K
= -2,469.54%
Lumen Technologies Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the company reported a negative ROE of -2,469.54%, indicating that its net income was insufficient to cover shareholders' equity. This sharp decline from the prior year's ROE of -14.83% raises concerns about the company's profitability and efficient utilization of equity.
In 2021, Lumen Technologies Inc achieved an ROE of 17.17%, reflecting a healthy return on shareholders' equity and indicating efficient management of assets to generate profits. However, this positive performance was preceded by a negative ROE of -11.04% in 2020, hinting at potential challenges or inefficiencies within the company.
The lowest ROE in the provided data was recorded in 2019 at -39.12%, suggesting a significant underperformance relative to shareholders' equity during that period. The negative trend in ROE from 2019 to 2023 raises questions about the company's ability to effectively generate profits from its equity base and deliver sustainable returns to shareholders.
In conclusion, the varying ROE figures for Lumen Technologies Inc highlight the company's inconsistent profitability and the need for a comprehensive analysis of its financial performance and operational strategies to enhance shareholder value in the future.
Peer comparison
Dec 31, 2023