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