Louisiana-Pacific Corporation (LPX)

Short-term

Turnover ratios

The activity ratios of Louisiana-Pacific Corporation provide insights into the efficiency of the company's operations.

1. Inventory turnover: Louisiana-Pacific Corporation's inventory turnover has fluctuated over the analysis period, ranging from a low of 5.06 to a high of 7.93. A higher inventory turnover indicates faster sales of inventory, which is generally positive as it implies efficient management of inventory levels.

2. Receivables turnover: The receivables turnover ratio has also exhibited variability, with values ranging from 10.72 to 30.35. A higher receivables turnover signifies a shorter time taken to collect outstanding receivables, indicating effective credit policies and collection processes.

3. Payables turnover: The payables turnover ratio data is not available, which limits the assessment of the company's efficiency in paying its suppliers and managing trade credit.

4. Working capital turnover: Louisiana-Pacific Corporation's working capital turnover has shown fluctuations, varying between 3.04 and 7.49. A higher working capital turnover suggests that the company is effectively utilizing its working capital to generate sales revenue.

Overall, analyzing these activity ratios provides valuable insights into Louisiana-Pacific Corporation's operational efficiency and effectiveness in managing its inventory, receivables, and working capital. The company should continue to monitor these ratios to ensure optimal performance and sustainable growth.

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Average number of days

Louisiana-Pacific Corporation's Days of Inventory on Hand (DOH) has shown fluctuations over the past few years, ranging from a low of 46.03 days in June 2020 to a high of 72.09 days in March 2024. The company seems to be managing its inventory levels more efficiently recently, as indicated by the decrease in DOH from the peak in 2024.

In terms of Days of Sales Outstanding (DSO), the company's collection period has also experienced variability, with the number of days ranging from 12.03 days in December 2022 to 34.04 days in March 2021. A decreasing trend in DSO is evident from 2021 onwards, suggesting an improvement in the company's ability to collect payments from customers promptly.

The absence of data on the Number of Days of Payables for the company indicates that payables turnover could not be calculated. This could be due to the nature of the company's operations or a lack of available information on payment terms with suppliers.

Overall, the trends in inventory management and accounts receivable collection for Louisiana-Pacific Corporation show improvements in efficiency and liquidity over the years, which is generally favorable for the company's operations and financial health.

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Long-term

Louisiana-Pacific Corporation's fixed asset turnover ratio has shown fluctuation over the period, starting at 2.49 in March 2020 and peaking at 3.89 in December 2021 before declining to 1.85 by December 2024. This ratio measures the efficiency of the company in generating sales from its fixed assets.

On the other hand, the total asset turnover ratio has also fluctuated, starting at 1.08 in March 2020 and reaching its highest point at 1.84 in December 2021, indicating an increase in revenue generated for each dollar of total assets. However, by December 2024, the ratio had decreased to 1.14.

Overall, the trend in both ratios reflects changes in Louisiana-Pacific Corporation's ability to utilize its assets efficiently to generate revenue, with the fixed asset turnover ratio showing more volatility compared to the total asset turnover ratio. Further analysis could provide insights into the operational efficiency and asset management strategies of the company.