Louisiana-Pacific Corporation (LPX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,581,000 | 3,854,000 | 3,915,000 | 2,399,000 | 2,310,000 |
| Property, plant and equipment | US$ in thousands | 1,540,000 | 1,326,000 | 1,039,000 | 918,000 | 965,000 |
| Fixed asset turnover | 1.68 | 2.91 | 3.77 | 2.61 | 2.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,581,000K ÷ $1,540,000K
= 1.68
Louisiana-Pacific Corp.'s fixed asset turnover has exhibited fluctuating trends over the past five years. The ratio was 1.64 in 2023, a significant decrease from 2.82 in 2022, indicating that the company generated less revenue from its fixed assets in 2023 relative to the previous year. This decrease might suggest inefficiencies in asset utilization or a decline in sales compared to the investment in fixed assets.
In 2021, the fixed asset turnover was at its peak of 3.95, reflecting a highly efficient utilization of fixed assets to generate revenue. This could indicate effective management of assets or growth in sales without a proportionate increase in fixed assets investment.
In 2020 and 2019, the fixed asset turnover was 2.87 and 2.25, respectively, showing relatively strong performance in these years. However, there was a slight decrease in 2020 compared to 2019, which could signify a decrease in asset utilization efficiency or a potential increase in fixed assets without a corresponding increase in revenue generation.
Overall, the trend in fixed asset turnover for Louisiana-Pacific Corp. indicates variations in how effectively the company is using its fixed assets to generate revenue over the analyzed period. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's asset management efficiency.
Peer comparison
Dec 31, 2023