Louisiana-Pacific Corporation (LPX)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,940,000 | 2,918,000 | 2,924,000 | 2,721,000 | 2,581,000 | 2,628,000 | 2,752,000 | 3,271,000 | 3,854,000 | 3,984,000 | 4,150,000 | 4,188,000 | 4,038,000 | 3,674,000 | 3,451,000 | 2,831,000 | 2,399,000 | 2,465,000 | 2,273,000 | 2,313,000 |
| Total current assets | US$ in thousands | 855,000 | 885,000 | 883,000 | 842,000 | 778,000 | 745,000 | 671,000 | 713,000 | 854,000 | 1,001,000 | 1,208,000 | 1,341,000 | 890,000 | 1,197,000 | 1,230,000 | 1,226,000 | 993,000 | 904,000 | 689,000 | 976,000 |
| Total current liabilities | US$ in thousands | 299,000 | 303,000 | 261,000 | 254,000 | 259,000 | 266,000 | 267,000 | 229,000 | 336,000 | 430,000 | 464,000 | 459,000 | 351,000 | 427,000 | 353,000 | 360,000 | 286,000 | 244,000 | 219,000 | 214,000 |
| Working capital turnover | 5.29 | 5.01 | 4.70 | 4.63 | 4.97 | 5.49 | 6.81 | 6.76 | 7.44 | 6.98 | 5.58 | 4.75 | 7.49 | 4.77 | 3.94 | 3.27 | 3.39 | 3.73 | 4.84 | 3.04 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,940,000K ÷ ($855,000K – $299,000K)
= 5.29
Louisiana-Pacific Corporation's working capital turnover has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The working capital turnover ratio measures the efficiency of the company in managing its working capital to generate sales.
Initially, in March 2020, the working capital turnover was 3.04, indicating that the company generated $3.04 in sales for every dollar of working capital invested. The ratio improved significantly by June 2021, reaching 4.84, suggesting enhanced efficiency in utilizing working capital to drive sales.
Thereafter, the ratio fluctuated but generally remained above 3, indicating that the company was effectively utilizing its working capital. The peak of 7.49 in December 2021 reflects a notably efficient use of working capital to generate sales. Subsequently, the ratio trended downwards but remained relatively stable around the 5-6 range, indicating continued effectiveness in utilizing working capital.
Overall, the company's working capital turnover has demonstrated varying levels of efficiency in converting working capital into sales over the years, with certain periods showing stronger performance compared to others. The management should continue to monitor this ratio to ensure optimal utilization of resources for revenue generation.
Peer comparison
Dec 31, 2024