Lumen Technologies Inc (LUMN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Lumen Technologies Inc has maintained a consistently low and stable solvency profile, as indicated by its debt ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all stayed at 0.00 across the reported periods, suggesting that the company has not relied heavily on debt to finance its operations or growth.
However, the Financial leverage ratio has shown some fluctuation over time. From March 31, 2020, to December 31, 2021, the ratio fluctuated between 4.57 and 5.32, indicating a moderate level of leverage. The ratio then decreased to 4.37 by December 31, 2022, signifying a lower level of financial leverage.
From March 31, 2023, onwards, there was a significant spike in the Financial leverage ratio, reaching as high as 99.38 by September 30, 2024. This sharp increase in leverage could raise concerns about the company's ability to meet its debt obligations in the short term, as a higher financial leverage ratio indicates a greater reliance on debt financing.
In conclusion, while Lumen Technologies Inc has demonstrated historically low debt ratios, the recent surge in the Financial leverage ratio warrants further monitoring to assess the company's solvency and financial risk going forward.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.83 | -0.73 | -0.73 | -8.24 | -7.84 | -8.82 | -7.92 | -0.36 | -0.21 | 2.57 | 2.80 | 2.88 | 2.72 | 0.88 | 0.75 | 0.67 | 0.57 | 2.01 | 1.92 | 1.87 |
The interest coverage ratio of Lumen Technologies Inc has shown fluctuating trends over the past few years. The ratio ranged from a low of -8.82 in September 2023 to a high of 2.88 in March 2022. A ratio below 1 indicates that the company may have difficulties in covering its interest expenses with its operating income.
Lumen Technologies Inc's interest coverage deteriorated significantly from December 2022 to September 2024, experiencing negative ratios. This suggests that the company's ability to cover its interest payments from its operating income was severely strained during this period.
However, there was a slight improvement in the interest coverage ratio from the low in September 2024 to a positive ratio of 0.83 in December 2024. This improvement could indicate a potential recovery in the company's ability to service its interest obligations.
Overall, the trend in Lumen Technologies Inc's interest coverage ratio highlights the importance of closely monitoring the company's financial performance and its ability to generate sufficient operating income to cover its interest expenses.