Louisiana-Pacific Corporation (LPX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,988,000 | 2,356,000 | 1,952,000 | 1,566,000 | 2,007,000 |
| Inventory | US$ in thousands | 378,000 | 337,000 | 278,000 | 259,000 | 265,000 |
| Inventory turnover | 5.26 | 6.99 | 7.02 | 6.05 | 7.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,988,000K ÷ $378,000K
= 5.26
The inventory turnover ratio for Louisiana-Pacific Corp. has exhibited some fluctuations over the past five years.
In 2023, the inventory turnover ratio was 5.26, which indicates that the company's inventory was sold and replaced approximately 5.26 times during the year. This represents a decrease from the previous year's ratio of 7.01.
The trend in inventory turnover ratios from 2020 to 2022 showed an improvement, with ratios ranging from 7.41 to 7.66. This suggests that the company was managing its inventory efficiently during these years, with inventory being turned over relatively quickly.
However, the decrease in the inventory turnover ratio in 2023 compared to the previous year may raise concerns about potential inventory management issues or a slowdown in sales. A lower inventory turnover ratio could indicate excess inventory levels, obsolescence, or inefficiencies in inventory management.
Further analysis and comparison with industry benchmarks would be necessary to assess the effectiveness of Louisiana-Pacific Corp.'s inventory management practices and its overall operational efficiency.
Peer comparison
Dec 31, 2023