Lumen Technologies Inc (LUMN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 19,703,000 | 20,255,000 | 28,635,000 | — | — |
| Total assets | US$ in thousands | 34,018,000 | 45,612,000 | 57,993,000 | 59,394,000 | 64,742,000 |
| Debt-to-assets ratio | 0.58 | 0.44 | 0.49 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $19,703,000K ÷ $34,018,000K
= 0.58
The debt-to-assets ratio of Lumen Technologies Inc has exhibited some fluctuations over the past five years. In 2023, the ratio stands at 0.59, indicating that 59% of the company's total assets are financed by debt. This represents an increase from the previous year's ratio of 0.45.
Comparing to the ratios from 2021 to 2019, we see that Lumen's debt-to-assets ratio has ranged from 0.50 to 0.54. This implies that the company has typically maintained a relatively high proportion of debt in financing its assets over the years, with 2023 showing the highest ratio in the period analyzed.
A rising debt-to-assets ratio can suggest increased financial risk for the company, as higher leverage means more of its assets are funded by debt, which can lead to higher interest expenses and potential solvency issues if not managed properly. Investors and creditors may monitor this ratio closely to assess the company's risk profile and its ability to meet financial obligations.
Peer comparison
Dec 31, 2023