Louisiana-Pacific Corporation (LPX)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,581,000 | 2,628,000 | 2,752,000 | 3,271,000 | 3,854,000 | 3,984,000 | 4,150,000 | 4,188,000 | 4,038,000 | 3,674,000 | 3,451,000 | 2,831,000 | 2,399,000 | 2,465,000 | 2,273,000 | 2,313,000 | 2,310,000 | 2,362,000 | 2,496,000 | 2,719,000 |
| Property, plant and equipment | US$ in thousands | 1,540,000 | 1,512,000 | 1,504,000 | 1,397,000 | 1,326,000 | 1,215,000 | 1,166,000 | 1,132,000 | 1,039,000 | 980,000 | 938,000 | 921,000 | 918,000 | 902,000 | 912,000 | 930,000 | 965,000 | 1,034,000 | 1,038,000 | 1,031,200 |
| Fixed asset turnover | 1.68 | 1.74 | 1.83 | 2.34 | 2.91 | 3.28 | 3.56 | 3.70 | 3.89 | 3.75 | 3.68 | 3.07 | 2.61 | 2.73 | 2.49 | 2.49 | 2.39 | 2.28 | 2.40 | 2.64 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,581,000K ÷ $1,540,000K
= 1.68
Louisiana-Pacific Corp.'s fixed asset turnover has shown some variation over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is generating more revenue for each dollar invested in fixed assets.
In Q1 2022, the fixed asset turnover was at its peak at 4.11, indicating that for every dollar invested in fixed assets, the company generated $4.11 in sales revenue. This high ratio suggests that the company was very efficient in utilizing its fixed assets to drive revenue.
The ratio then gradually decreased over the next quarters, reaching a low of 1.59 in Q3 2023. This decline may indicate a decrease in sales generated from fixed assets, which could be due to various factors such as lower sales volume, underutilization of fixed assets, or inefficient asset management.
However, in Q4 2023, the fixed asset turnover increased to 1.64, showing a slight improvement from the previous quarter. This uptick could be a positive sign that the company is starting to generate more revenue from its fixed assets.
Overall, the fluctuation in Louisiana-Pacific Corp.'s fixed asset turnover ratio suggests some variability in the company's efficiency in utilizing its fixed assets to generate sales. Further analysis of the company's operational performance and strategic initiatives may provide insights into the factors driving these fluctuations in fixed asset turnover.
Peer comparison
Dec 31, 2023