GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Lumen Technologies Inc (STU:CYTH) » Definitions » ROE %

Lumen Technologies (STU:CYTH) ROE % : -594.55% (As of Dec. 2023)


View and export this data going back to 1978. Start your Free Trial

What is Lumen Technologies ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lumen Technologies's annualized net income for the quarter that ended in Dec. 2023 was €-7,318 Mil. Lumen Technologies's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was €1,231 Mil. Therefore, Lumen Technologies's annualized ROE % for the quarter that ended in Dec. 2023 was -594.55%.

The historical rank and industry rank for Lumen Technologies's ROE % or its related term are showing as below:

STU:CYTH' s ROE % Range Over the Past 10 Years
Min: -195.86   Med: -1.72   Max: 17.68
Current: -195.86

During the past 13 years, Lumen Technologies's highest ROE % was 17.68%. The lowest was -195.86%. And the median was -1.72%.

STU:CYTH's ROE % is ranked worse than
98.37% of 369 companies
in the Telecommunication Services industry
Industry Median: 6.98 vs STU:CYTH: -195.86

Lumen Technologies ROE % Historical Data

The historical data trend for Lumen Technologies's ROE % 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 ROE % Chart

Lumen Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -32.09 -9.51 18.31 -14.42 -185.61

Lumen Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % 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 -103.03 19.03 -521.16 -13.96 -594.55

Competitive Comparison of Lumen Technologies's ROE %

For the Telecom Services subindustry, Lumen Technologies's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's ROE % distribution charts can be found below:

* The bar in red indicates where Lumen Technologies's ROE % falls into.



Lumen Technologies ROE % Calculation

Lumen Technologies's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-9443.266/( (9793.056+382.389)/ 2 )
=-9443.266/5087.7225
=-185.61 %

Lumen Technologies's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-7317.66/( (2079.203+382.389)/ 2 )
=-7317.66/1230.796
=-594.55 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Lumen Technologies  (STU:CYTH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-7317.66/1230.796
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-7317.66 / 12900.356)*(12900.356 / 32426.2415)*(32426.2415 / 1230.796)
=Net Margin %*Asset Turnover*Equity Multiplier
=-56.72 %*0.3978*26.3457
=ROA %*Equity Multiplier
=-22.56 %*26.3457
=-594.55 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-7317.66/1230.796
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-7317.66 / -7856.856) * (-7856.856 / 487.844) * (487.844 / 12900.356) * (12900.356 / 32426.2415) * (32426.2415 / 1230.796)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9314 * -16.1053 * 3.78 % * 0.3978 * 26.3457
=-594.55 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Lumen Technologies ROE % Related Terms

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


Lumen Technologies (STU:CYTH) Business Description

Traded in Other Exchanges
Address
100 CenturyLink Drive, Monroe, LA, USA, 71203
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.

Lumen Technologies (STU:CYTH) Headlines

From GuruFocus

Cyclo Therapeutics to Present at the World Orphan Drug Congress USA 2022

By Business Wire Business Wire 07-11-2022

Cyclo Therapeutics to Present at the NNPDF-INPDA Conferences 2022

By Business Wire Business Wire 07-21-2022