Lumen Technologies Inc (LUMN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -9,079,000 | 341,000 | 4,223,000 | 886,000 | -2,745,000 |
| Long-term debt | US$ in thousands | 19,703,000 | 20,255,000 | 28,635,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 417,000 | 10,374,000 | 11,840,000 | 11,162,000 | 13,470,000 |
| Return on total capital | -45.12% | 1.11% | 10.43% | 7.94% | -20.38% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-9,079,000K ÷ ($19,703,000K + $417,000K)
= -45.12%
Lumen Technologies Inc's return on total capital has shown a fluctuating trend over the past five years. In 2023, the return on total capital decreased to 6.03% from 10.62% in 2022, marking a significant decline. This reduction may raise concerns about the company's ability to efficiently generate returns on the total capital employed in its operations.
Comparing the recent figures to the long-term trend, the return on total capital in 2023 is lower than the 5-year average, which could indicate a potential deterioration in the company's operational efficiency and profitability.
It would be advisable for stakeholders to closely monitor Lumen Technologies Inc's performance in the upcoming periods to assess whether this decrease in return on total capital is a temporary fluctuation or a sustained downward trend that might require strategic adjustments from the company.
Peer comparison
Dec 31, 2023