Louisiana-Pacific Corporation (LPX)

Short-term

Turnover ratios

Inventory turnover for Louisiana-Pacific Corp. has been relatively consistent in recent quarters, ranging from 5.01 to 5.26, indicating that the company effectively manages its inventory levels and efficiently converts inventory into sales.

Receivables turnover has shown significant fluctuations, with values ranging from 13.58 to 30.35. While a high receivables turnover ratio suggests efficient collection of receivables, the fluctuations may indicate variability in the company's credit policies or the nature of its customer base.

Payables turnover data is available only for Q4 2022 and Q4 2023, showing values of 14.10 and 13.23, respectively. These figures suggest that the company is paying its creditors slightly faster in Q4 2023 compared to Q4 2022.

Working capital turnover has been relatively stable, ranging from 4.97 to 7.55, indicating that the company efficiently utilizes its working capital to generate sales revenue. This ratio measures how effectively the company is using its current assets to support its sales activities.

Overall, Louisiana-Pacific Corp. appears to be effectively managing its activity ratios, with a consistent inventory turnover, varying receivables turnover, and stable working capital turnover. The payables turnover data is limited, but the available figures suggest a relatively efficient payment of creditors. These ratios collectively provide insights into the company's operational efficiency and effectiveness in managing its assets and liabilities.

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Average number of days

Louisiana-Pacific Corp.'s days of inventory on hand (DOH) have shown an increasing trend over the past eight quarters, indicating an increase in the average number of days the company holds inventory before selling it. This may suggest potential inefficiencies in managing inventory levels or slower sales, which could tie up working capital.

In terms of days of sales outstanding (DSO), there is a fluctuating pattern over the same period, with a general trend of higher DSO in the more recent quarters. This implies that the company is taking longer to collect payments from customers, which could impact cash flow and liquidity.

The number of days of payables has been relatively stable, although there are missing values for some quarters. This suggests that the company is maintaining a consistent payment period to its suppliers.

Overall, these activity ratios collectively indicate areas where Louisiana-Pacific Corp. may need to focus on improving efficiency in managing its inventory, receivables, and payables to optimize its working capital and cash flow position.

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Long-term

Louisiana-Pacific Corp.'s long-term activity ratios for fixed asset turnover and total asset turnover have shown varying trends over the past eight quarters.

The fixed asset turnover has decreased steadily from 4.11 in Q1 2022 to 1.64 in Q4 2023. This indicates that the company is generating less revenue for each dollar invested in fixed assets. The declining trend suggests potential inefficiencies in utilizing fixed assets effectively to generate sales.

On the other hand, the total asset turnover ratio has also been on a downward trajectory, albeit less steeply, from 1.83 in Q1 2022 to 1.06 in Q4 2023. This indicates that the company is generating less revenue for each dollar of total assets. The decreasing trend suggests that the company may not be efficiently utilizing its total assets to generate sales.

Overall, the declining trends in both fixed asset turnover and total asset turnover ratios suggest that Louisiana-Pacific Corp. may need to assess and improve its asset management efficiency to enhance revenue generation from its assets.