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.