Lumen Technologies Inc (LUMN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 34,018,000 | 35,921,000 | 36,168,000 | 45,530,000 | 45,612,000 | 54,817,000 | 57,675,000 | 58,037,000 | 57,993,000 | 58,308,000 | 58,947,000 | 58,828,000 | 59,394,000 | 62,599,000 | 64,171,000 | 64,056,000 | 64,742,000 | 64,728,000 | 64,508,000 | 64,788,000 |
| 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 |
| Financial leverage ratio | 81.58 | 16.19 | 15.84 | 4.14 | 4.40 | 4.36 | 4.72 | 4.73 | 4.90 | 5.21 | 5.04 | 5.20 | 5.32 | 4.57 | 4.77 | 4.82 | 4.81 | 4.73 | 4.72 | 4.79 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $34,018,000K ÷ $417,000K
= 81.58
The financial leverage ratio of Lumen Technologies Inc has shown significant fluctuations over the past eight quarters, ranging from 81.58 in Q4 2023 to 4.14 in Q1 2023. This ratio measures the company's level of debt relative to its equity, indicating the extent to which Lumen Technologies is using borrowed funds to finance its operations.
A high financial leverage ratio, such as the one observed in Q4 2023, suggests that the company relies heavily on debt to fund its operations, which can amplify both returns and risks for shareholders. In contrast, lower ratios seen in Q1-Q3 2023 indicate a lower reliance on debt financing, potentially signaling a more conservative financial structure.
It is important for investors and stakeholders to monitor the financial leverage ratio over time to evaluate the company's ability to meet its debt obligations and manage financial risks effectively. The fluctuations in Lumen Technologies' financial leverage ratio highlight the dynamic nature of its capital structure and the importance of understanding the company's debt management strategies.
Peer comparison
Dec 31, 2023