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LUMN (Lumen Technologies) Operating Income : $301 Mil (TTM As of Sep. 2024)


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What is Lumen Technologies Operating Income?

Lumen Technologies's Operating Income for the three months ended in Sep. 2024 was $88 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $301 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Lumen Technologies's Operating Income for the three months ended in Sep. 2024 was $88 Mil. Lumen Technologies's Revenue for the three months ended in Sep. 2024 was $3,221 Mil. Therefore, Lumen Technologies's Operating Margin % for the quarter that ended in Sep. 2024 was 2.73%.

Warning Sign:

Lumen Technologies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -8.1%.

Lumen Technologies's 5-Year average Growth Rate for Operating Margin % was -8.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Lumen Technologies's annualized ROC % for the quarter that ended in Sep. 2024 was 0.99%. Lumen Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 3.54%.


Lumen Technologies Operating Income Historical Data

The historical data trend for Lumen Technologies's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lumen Technologies Operating Income Chart

Lumen Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,780.00 3,573.00 4,285.00 3,294.00 1,072.00

Lumen Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 206.00 92.00 28.00 93.00 88.00

Lumen Technologies Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $301 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lumen Technologies  (NYSE:LUMN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Lumen Technologies's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=352 * ( 1 - 13.95% )/( (30505 + 30918)/ 2 )
=302.896/30711.5
=0.99 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Lumen Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=716/( ( (20089 + max(-1036, 0)) + (20344 + max(-1195, 0)) )/ 2 )
=716/( ( 20089 + 20344 )/ 2 )
=716/20216.5
=3.54 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1294 + 184 + 751) - (2416 + 670 + 179)
=-1036

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1225 + 173 + 669) - (2275 + 808 + 179)
=-1195

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Lumen Technologies's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=88/3221
=2.73 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Lumen Technologies Operating Income Related Terms

Thank you for viewing the detailed overview of Lumen Technologies's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Lumen Technologies Business Description

Address
100 CenturyLink Drive, Monroe, LA, USA, 71203
With 450,000 route miles of fiber, Lumen Technologies is one of the United States' largest telecommunications carriers serving global enterprises. Its merger with Level 3 in 2017 and divestiture of much of its incumbent local exchange carrier, or ILEC, business in 2022 has shifted the company's operations away from its legacy consumer business and toward enterprises (now about 75% of revenue). Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.
Executives
James Fowler director 100 CENTURYLINK DRIVE, MONROE LA 71203
Kathleen E Johnson director, officer: President & CEO 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
T Michael Glenn director 942 S SHADY GROVE RD, MEMPHIS TN 38120
Christopher Stansbury officer: EVP and CFO C/O ARROW ELECTRONICS, INC, 9201 EAST DRY CREEK ROAD, CENTENNIAL CO 80112
Quincy L Allen director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Ashley Haynes-gaspar officer: EVP and Customer Exp Officer 100 CENTURYLINK DRIVE, MONROE LA 71203
Kevin P. Chilton director 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Laurie Siegel director C/O VOLT INFORMATION SCIENCES, INC., 1133 AVENUE OF THE AMERICAS, 15TH FLOOR, NEW YORK NY 10036
Peter C Brown director 909 WALNUT STE 200, KANSAS CITY MO 64106
Scott Trezise officer: EVP, Human Resources 100 CENTURYLINK DRIVE, MONROE LA 71203
Shaun C Andrews officer: Exec VP & Chief Mktg Officer 100 CENTURYLINK DRIVE, MONROE LA 71203
Sham Chotai officer: EVP, Product and IT 10201 TORRE AVENUE, SUITE 350, CUPERTINO CA 95014
Michael James Roberts director ONE MCDONALD'S PLAZA, OAK BROOK IL 60523
Steven T Clontz director 781 THIRD AVENUE, KING OF PRUSSIA PA 19406-1409
Martha Helena Bejar director C/O POLYCOM, INC., 6001 AMERICA CENTER DRIVE, SAN JOSE CA 95002