Lumen Technologies Inc (LUMN)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 33,496,000 | 33,989,000 | 32,943,000 | 33,173,000 | 34,018,000 | 35,921,000 | 36,168,000 | 45,530,000 | 45,581,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 464,000 | 342,000 | 466,000 | 504,000 | 417,000 | 2,219,000 | 2,284,000 | 10,995,000 | 10,437,000 | 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 |
| Financial leverage ratio | 72.19 | 99.38 | 70.69 | 65.82 | 81.58 | 16.19 | 15.84 | 4.14 | 4.37 | 4.36 | 4.72 | 4.73 | 4.90 | 5.21 | 5.04 | 5.20 | 5.32 | 4.57 | 4.77 | 4.82 |
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 fluctuations over the provided time period. The ratio has been consistently above 4 in the earlier years, indicating that the company relies more on debt financing rather than equity.
However, in the most recent quarters, there has been a significant spike in the financial leverage ratio, reaching exceptionally high levels of 81.58% by December 31, 2023, and 99.38% by September 30, 2024. Such a sharp increase in the ratio suggests that the company has taken on significantly more debt relative to its equity, potentially indicating heightened financial risk.
It is important for stakeholders to closely monitor Lumen Technologies Inc's financial leverage ratio and assess the company's ability to manage its debt levels effectively to avoid potential financial distress or default in the future.
Peer comparison
Dec 31, 2024