Louisiana-Pacific Corporation (LPX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 22.45 | 16.65 | 30.35 | 23.17 | 13.04 | |
| DSO | days | 16.26 | 21.92 | 12.03 | 15.76 | 27.99 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.45
= 16.26
The Days of Sales Outstanding (DSO) for Louisiana-Pacific Corporation have shown a decreasing trend over the past five years. In December 2020, the DSO was 27.99 days, which decreased to 15.76 days by December 2021. This declining trend continued with the DSO further reducing to 12.03 days by December 2022. However, there was a slight increase in DSO to 21.92 days by December 2023, followed by a decrease to 16.26 days by December 2024.
The decreasing trend in DSO indicates that the company has been able to collect its accounts receivable more efficiently over the years. A lower DSO signifies that the company is collecting its outstanding receivables more quickly, which could improve its cash flow and liquidity position. The increase in DSO in 2023 may warrant further investigation to understand the factors that led to the temporary deviation from the improving trend.
Overall, the decreasing DSO trend for Louisiana-Pacific Corporation reflects positively on its receivables management and efficiency in collecting payments from customers.
Peer comparison
Dec 31, 2024