Louisiana-Pacific Corporation (LPX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,107,000 | 2,089,000 | 2,074,000 | 2,015,000 | 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 |
| Inventory | US$ in thousands | 357,000 | 372,000 | 373,000 | 398,000 | 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 |
| Inventory turnover | 5.90 | 5.62 | 5.56 | 5.06 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,107,000K ÷ $357,000K
= 5.90
Louisiana-Pacific Corporation's inventory turnover ratio has shown fluctuations over the past few years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during a period inventory is sold and replaced.
Based on the provided data:
- The inventory turnover ratio ranged from a low of 5.06 in March 31, 2024, to a high of 7.93 in June 30, 2020, reflecting fluctuations in the efficiency of inventory management during the period.
- Generally, a higher inventory turnover ratio indicates that the company is selling goods more quickly, which can be a positive sign of effective inventory management.
- However, a consistent decline in the inventory turnover ratio over time may suggest issues with overstocking, obsolescence, or slow sales.
- It is important to analyze the trend of the inventory turnover ratio over time to understand if the company's inventory management practices are improving or deteriorating.
Overall, Louisiana-Pacific Corporation should continue to monitor its inventory turnover ratio closely and take actions to optimize inventory levels to ensure efficient operations and improve financial performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024