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