Lumen Technologies Inc (LUMN)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	417,000	10,374,000	11,840,000	11,162,000	13,470,000
Debt-to-equity ratio		47.25	1.95	2.42	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $19,703,000K ÷ $417,000K
= 47.25

Lumen Technologies Inc's debt-to-equity ratio has exhibited significant fluctuations over the past five years, reflecting changes in the company's capital structure and financial leverage.

In 2019, the debt-to-equity ratio stood at 2.58, highlighting a moderate level of debt relative to equity. This ratio decreased in 2020 to 2.85, indicating a slight increase in financial leverage. However, the ratio then decreased sharply in 2021 to 2.45, suggesting a reduction in the company's reliance on debt to finance its operations.

The most notable change occurred in 2022 when the debt-to-equity ratio dropped significantly to 1.97, indicating a substantial decrease in financial leverage and a higher proportion of equity in the capital structure. This reduction could signify improved financial stability and lower risk for the company.

The latest figure for 2023 reveals a notable increase in the debt-to-equity ratio to 47.93, which represents a dramatic shift towards higher financial leverage and increased indebtedness relative to equity. This sharp increase in the ratio may raise concerns about the company's financial health and ability to manage its debt obligations effectively.

In conclusion, the fluctuating trend in Lumen Technologies Inc's debt-to-equity ratio indicates varying levels of financial leverage and capital structure over the years, with the latest ratio pointing towards a significant increase in debt relative to equity, which warrants close monitoring to assess its impact on the company's financial stability and risk profile.