Louisiana-Pacific Corporation (LPX)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,310,000 | 2,362,000 | 2,496,000 | 2,719,000 |
| Total current assets | US$ in thousands | 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 | 619,000 | 761,000 | 828,000 | 845,500 |
| Total current liabilities | US$ in thousands | 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 | 244,000 | 216,000 | 229,000 | 237,600 |
| Working capital turnover | 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 | 6.16 | 4.33 | 4.17 | 4.47 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,581,000K ÷ ($778,000K – $259,000K)
= 4.97
Louisiana-Pacific Corp.'s working capital turnover has fluctuated over the past eight quarters, ranging from a low of 4.97 to a high of 7.55. Working capital turnover measures how efficiently a company is using its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively utilizing its working capital to support its sales activities.
In the most recent quarter, Q4 2023, the working capital turnover was 4.97, which represents a slight decrease compared to the previous quarter's ratio of 5.14. This suggests that the company may be slightly less efficient in converting its working capital into sales revenue during this period.
On the other hand, the working capital turnover reached its peak in Q4 2022 at 7.47, indicating a strong performance in utilizing working capital to drive sales. The company maintained relatively high turnover ratios throughout 2022, with values above 6 in three out of four quarters, reflecting efficient working capital management.
Overall, while there have been fluctuations in Louisiana-Pacific Corp.'s working capital turnover, the company has generally demonstrated a solid ability to efficiently convert its working capital into sales revenue, with periods of higher and lower turnover ratios. Continued monitoring of this ratio will be important to assess the company's ongoing efficiency in managing its working capital effectively.
Peer comparison
Dec 31, 2023