Louisiana-Pacific Corporation (LPX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,988,000 | 2,066,000 | 2,172,000 | 2,292,000 | 2,356,000 | 2,308,000 | 2,201,000 | 2,073,000 | 2,064,000 | 1,690,000 | 1,680,000 | 1,627,000 | 1,566,000 | 1,878,000 | 1,903,000 | 1,982,000 | 2,006,000 | 2,034,000 | 2,030,000 | 2,070,000 |
| Inventory | US$ in thousands | 378,000 | 379,000 | 407,000 | 415,000 | 337,000 | 337,000 | 309,000 | 382,000 | 278,000 | 320,000 | 311,000 | 307,000 | 259,000 | 238,000 | 240,000 | 284,000 | 265,000 | 260,000 | 293,000 | 309,800 |
| Inventory turnover | 5.26 | 5.45 | 5.34 | 5.52 | 6.99 | 6.85 | 7.12 | 5.43 | 7.42 | 5.28 | 5.40 | 5.30 | 6.05 | 7.89 | 7.93 | 6.98 | 7.57 | 7.82 | 6.93 | 6.68 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,988,000K ÷ $378,000K
= 5.26
Louisiana-Pacific Corp.'s inventory turnover has shown a consistent downward trend over the past eight quarters, from 8.45 in Q2 2022 to 5.26 in Q4 2023. This indicates that the company is taking longer to sell its inventory. A lower inventory turnover could suggest issues such as overstocking, slow sales, or inefficiencies in inventory management.
It is worth noting that inventory turnover figures above 5 are generally considered healthy for many industries, but the significant decline observed in Louisiana-Pacific Corp.'s turnover could warrant further investigation into the company's inventory management practices. The company may need to assess its inventory levels, streamline operations, and improve demand forecasting to optimize efficiency and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023