Lumen Technologies Inc (LUMN)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,142,000	-9,079,000	341,000	4,140,000	824,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	464,000	417,000	10,437,000	11,840,000	11,162,000
Return on total capital		246.12%	-2,177.22%	3.27%	34.97%	7.38%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,142,000K ÷ ($—K + $464,000K)
= 246.12%

Lumen Technologies Inc's return on total capital has shown significant fluctuations over the years based on the provided data.

- As of December 31, 2020, the return on total capital was 7.38%. This suggests that the company was generating a decent return on the capital invested in the business at that time.

- By December 31, 2021, the return on total capital surged to 34.97%, indicating a substantial improvement in the company's efficiency in utilizing its total capital to generate profits.

- However, the return on total capital dropped significantly to 3.27% by December 31, 2022. This decrease could imply that the company faced challenges in generating returns on the capital invested during this period.

- The data shows a drastic negative return on total capital of -2,177.22% as of December 31, 2023. Such a large negative number indicates that the company's capital allocation or operational efficiency may have encountered severe problems during this period. This requires a closer examination of the underlying factors contributing to this massive decline.

- By December 31, 2024, the return on total capital rebounded significantly to 246.12%, indicating a remarkable improvement compared to the prior year. This surge could be a result of strategic decisions, operational improvements, or changes in market conditions that boosted the company's profitability and efficiency in capital utilization.

In conclusion, the return on total capital for Lumen Technologies Inc has experienced notable volatility, ranging from positive to negative values and displaying substantial variations over the years. It is essential for stakeholders to closely monitor this metric and investigate the factors driving these fluctuations to assess the company's financial performance and sustainability.