Lumen Technologies Inc (LUMN)

Debt-to-capital ratio

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
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
Debt-to-capital ratio 0.98 0.90 0.90 0.64 0.66 0.66 0.00 0.00 0.71 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $19,703,000K ÷ ($19,703,000K + $417,000K)
= 0.98

The debt-to-capital ratio of Lumen Technologies Inc has shown fluctuations over the past eight quarters. In Q4 2022, the ratio stood at 0.66, indicating that debt made up 66% of the company's capital structure. Since then, the ratio has increased steadily, reaching 0.98 in Q4 2023, implying that debt accounted for 98% of the company's capital.

These fluctuations suggest that Lumen Technologies Inc has been increasingly relying on debt to finance its operations or capital expenditures. The rising trend in the debt-to-capital ratio may raise concerns about the company's financial leverage and ability to meet its debt obligations in the long run.

It is essential for investors and stakeholders to closely monitor Lumen Technologies Inc's debt levels and financial health to assess the potential risks associated with its capital structure. Additionally, management should consider strategies to effectively manage and reduce debt levels to maintain a sustainable financial position.


Peer comparison

Dec 31, 2023