Lumen Technologies Inc (LUMN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 33,496,000 | 34,018,000 | 45,581,000 | 57,993,000 | 59,394,000 |
| Total stockholders’ equity | US$ in thousands | 464,000 | 417,000 | 10,437,000 | 11,840,000 | 11,162,000 |
| Financial leverage ratio | 72.19 | 81.58 | 4.37 | 4.90 | 5.32 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,496,000K ÷ $464,000K
= 72.19
The financial leverage ratio of Lumen Technologies Inc has shown a general declining trend from 5.32 in December 31, 2020, to 4.90 in December 31, 2021, and further to 4.37 in December 31, 2022, indicating a reduction in the company's reliance on debt financing. However, there was a significant spike in the financial leverage ratio to 81.58 in December 31, 2023, followed by a decrease to 72.19 in December 31, 2024. This sudden increase in leverage in 2023 might suggest a substantial increase in debt relative to equity, raising concerns about the company's financial risk and solvency. Further analysis is recommended to understand the factors contributing to this significant variation in the financial leverage ratio.
Peer comparison
Dec 31, 2024