Lumen Technologies has a quick ratio of 1.29. It generally indicates good short-term financial strength.
The historical rank and industry rank for Lumen Technologies's Quick Ratio or its related term are showing as below:
LTS:0HVP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.46 Med: 0.76 Max: 1.6
Current: 1.29
During the past 13 years, Lumen Technologies's highest Quick Ratio was 1.60. The lowest was 0.46. And the median was 0.76.
LTS:0HVP's Quick Ratio is ranked better than 65.23% of 394
companies
in the Telecommunication Services industry
Industry Median: 0.96
vs LTS:0HVP: 1.29
Lumen Technologies Quick Ratio Historical Data
The historical data trend for Lumen Technologies's Quick Ratio 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.
Competitive Comparison of Lumen Technologies's Quick Ratio
For the Telecom Services subindustry, Lumen Technologies's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lumen Technologies's Quick Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Lumen Technologies's Quick Ratio falls into.
Lumen Technologies Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Lumen Technologies's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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 (LTS:0HVP) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Lumen Technologies Quick Ratio Related Terms
Thank you for viewing the detailed overview of Lumen Technologies's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lumen Technologies (LTS:0HVP) Business Description
With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, 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 nearly 80% 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.
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