Louisiana-Pacific Corporation (LPX)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,940,000 | 2,918,000 | 2,924,000 | 2,721,000 | 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 |
| Property, plant and equipment | US$ in thousands | 1,592,000 | 1,567,000 | 1,542,000 | 1,533,000 | 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 |
| Fixed asset turnover | 1.85 | 1.86 | 1.90 | 1.77 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,940,000K ÷ $1,592,000K
= 1.85
Louisiana-Pacific Corporation's fixed asset turnover ratio has been fluctuating over the years based on the provided data. The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales revenue. A higher ratio typically suggests better asset utilization.
From March 31, 2020, to March 31, 2021, we observe a steady increase in the fixed asset turnover ratio, reaching its peak at 3.89 on December 31, 2021. This indicates that the company was effectively generating sales relative to its investment in fixed assets during this period.
However, starting from March 31, 2022, the fixed asset turnover ratio begins to decline gradually, dropping to 1.68 by December 31, 2023. This downward trend suggests a potential decrease in revenue generated per dollar invested in fixed assets, which could be attributed to various factors such as changes in production efficiency or pricing strategies.
It is important for Louisiana-Pacific Corporation to closely monitor and analyze the trends in its fixed asset turnover ratio to ensure optimal asset utilization and maintain or improve its financial performance in the long run.
Peer comparison
Dec 31, 2024