Lumen Technologies Inc (LUMN)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -9,079,000 | -10,129,000 | -9,039,000 | 147,000 | 341,000 | 4,294,000 | 4,087,000 | 4,355,000 | 4,223,000 | 1,360,000 | 1,156,000 | 1,025,000 | 886,000 | 3,531,000 | 3,548,000 | 3,641,000 | -2,745,000 | -5,404,000 | -5,424,000 | -5,661,000 |
| Long-term debt | US$ in thousands | 19,703,000 | 19,604,000 | 19,754,000 | 19,590,000 | 20,255,000 | 24,914,000 | — | — | 28,635,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 417,000 | 2,219,000 | 2,284,000 | 10,995,000 | 10,374,000 | 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 | 13,470,000 | 13,674,000 | 13,673,000 | 13,524,000 |
| Return on total capital | -45.12% | -46.41% | -41.02% | 0.48% | 1.11% | 11.45% | 33.45% | 35.46% | 10.43% | 12.16% | 9.88% | 9.07% | 7.94% | 25.79% | 26.36% | 27.39% | -20.38% | -39.52% | -39.67% | -41.86% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 some fluctuation over the past eight quarters. The return on total capital ranged from a low of 6.03% in Q4 2023 to a high of 10.73% in Q1 2022. Overall, the company's return on total capital has been relatively stable, with most values falling within the range of 9-11%.
The variations in return on total capital could be attributed to changes in the company's capital structure, profitability, or efficiency in utilizing its capital. A downward trend in return on total capital could indicate that the company is not generating sufficient returns on the capital invested in its operations. Conversely, an upward trend may suggest improving efficiency or profitability.
Further analysis of the underlying factors affecting the return on total capital, such as changes in revenue, expenses, asset base, or debt levels, would provide more insights into the company's financial performance and potential areas for improvement. It is essential for stakeholders to closely monitor these trends to assess the company's overall financial health and future prospects.
Peer comparison
Dec 31, 2023