Louisiana-Pacific Corporation (LPX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,941,000 | 2,581,000 | 3,854,000 | 3,915,000 | 2,399,000 |
| Property, plant and equipment | US$ in thousands | 1,592,000 | 1,540,000 | 1,326,000 | 1,039,000 | 918,000 |
| Fixed asset turnover | 1.85 | 1.68 | 2.91 | 3.77 | 2.61 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,941,000K ÷ $1,592,000K
= 1.85
The fixed asset turnover ratio of Louisiana-Pacific Corporation has shown variability over the years, ranging from 1.68 to 3.77. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
In 2021, the ratio increased significantly to 3.77, indicating that the company generated $3.77 in sales for every dollar invested in fixed assets. This improvement suggests better efficiency in asset utilization or potentially higher production levels.
However, in 2023, the ratio decreased to 1.68, signaling a decline in efficiency in turning fixed assets into revenue. This may be attributed to factors such as underutilization of assets, obsolescence, or lower sales volumes during that period.
In the latest year, 2024, the fixed asset turnover slightly improved to 1.85, but it is still lower than the peak in 2021. This suggests that the company may still have room for improvement in optimizing the utilization of its fixed assets.
Overall, fluctuations in the fixed asset turnover ratio for Louisiana-Pacific Corporation indicate varying levels of efficiency in using fixed assets to generate revenue over the analyzed period. Management may need to further analyze the underlying reasons for these fluctuations to optimize asset utilization and enhance operational efficiency.
Peer comparison
Dec 31, 2024