Louisiana-Pacific Corporation (LPX)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,941,000 | 2,581,000 | 3,854,000 | 3,915,000 | 2,399,000 |
| Total current assets | US$ in thousands | 855,000 | 778,000 | 854,000 | 890,000 | 993,000 |
| Total current liabilities | US$ in thousands | 299,000 | 259,000 | 336,000 | 351,000 | 286,000 |
| Working capital turnover | 5.29 | 4.97 | 7.44 | 7.26 | 3.39 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,941,000K ÷ ($855,000K – $299,000K)
= 5.29
Louisiana-Pacific Corporation's working capital turnover has demonstrated a notable increase over the past five years. The ratio, which measures the efficiency of utilizing working capital to generate sales, stood at 3.39 in December 2020 and experienced a substantial rise to 7.26 by December 2021. This uptrend continued as the ratio further improved to 7.44 in December 2022, indicating a more efficient management of working capital during this period.
However, in December 2023, there was a slight decrease in the working capital turnover to 4.97, suggesting a potential decline in the company's ability to convert working capital into sales efficiently. Nonetheless, the ratio rebounded to 5.29 by December 2024, showing signs of improvement compared to the previous year.
Overall, the upward trajectory in Louisiana-Pacific Corporation's working capital turnover from 2020 to 2022 reflects enhanced efficiency in the utilization of working capital to drive sales. Although there was a slight dip in 2023, the subsequent increase in 2024 indicates a continued focus on optimizing working capital management to support the company's operational performance and financial health.
Peer comparison
Dec 31, 2024