Lumen Technologies Inc (LUMN)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -55,000 | -2,135,000 | -2,065,000 | -10,752,000 | -10,298,000 | -11,372,000 | -10,716,000 | -1,636,000 | -1,548,000 | 2,029,000 | 1,995,000 | 2,157,000 | 2,033,000 | -764,000 | -942,000 | -1,071,000 | -1,232,000 | 1,280,000 | 1,216,000 | 1,210,000 |
| Total stockholders’ equity | US$ in thousands | 464,000 | 342,000 | 466,000 | 504,000 | 417,000 | 2,219,000 | 2,284,000 | 10,995,000 | 10,437,000 | 12,577,000 | 12,219,000 | 12,282,000 | 11,840,000 | 11,183,000 | 11,706,000 | 11,303,000 | 11,162,000 | 13,689,000 | 13,462,000 | 13,291,000 |
| ROE | -11.85% | -624.27% | -443.13% | -2,133.33% | -2,469.54% | -512.48% | -469.18% | -14.88% | -14.83% | 16.13% | 16.33% | 17.56% | 17.17% | -6.83% | -8.05% | -9.48% | -11.04% | 9.35% | 9.03% | 9.10% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-55,000K ÷ $464,000K
= -11.85%
Lumen Technologies Inc's return on equity (ROE) has displayed significant fluctuations over the periods provided. Starting from March 2020 to September 2022, the ROE figures remained positive but relatively low, ranging between 6% to 17%. However, in the following quarters, the ROE figures took a sharp negative turn, with substantial declines from -14% in December 2022 to a dramatic -2,469% in December 2023. This trend continued with even more intensified negative returns, reaching as low as -2,133% in March 2024 and -2,469% in December 2023.
Such a steep decline in ROE is a concerning indicator of the company's profitability and efficiency in generating returns for its shareholders. It suggests potential issues with the company's profitability, asset management, or excessive leveraging. Further analysis of Lumen Technologies Inc's operational and financial strategies will be crucial to understand the factors driving these extreme negative ROE figures and to work towards improving the company's financial performance and shareholder value.
Peer comparison
Dec 31, 2024