Louisiana-Pacific Corporation (LPX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 222,000 | 369,000 | 358,000 | 535,000 | 181,000 |
| Short-term investments | US$ in thousands | — | — | — | 11,000 | — |
| Total current liabilities | US$ in thousands | 259,000 | 336,000 | 351,000 | 286,000 | 244,000 |
| Cash ratio | 0.86 | 1.10 | 1.02 | 1.91 | 0.74 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($222,000K
+ $—K)
÷ $259,000K
= 0.86
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Louisiana-Pacific Corp.'s cash ratio has fluctuated over the past five years, indicating varying levels of liquidity.
In 2023, the cash ratio of 0.95 suggests that the company had $0.95 in cash and cash equivalents for every dollar of current liabilities. This ratio decreased compared to the prior year, indicating a slight reduction in liquidity.
In 2022, the cash ratio was 1.16, showing an improvement in liquidity compared to 2023. This means that the company had $1.16 in cash and cash equivalents for every dollar of current liabilities.
In 2021, the cash ratio was 1.07, indicating that Louisiana-Pacific Corp. had $1.07 in cash and cash equivalents for every dollar of current liabilities. This ratio remained relatively stable compared to the previous year.
In 2020, the cash ratio significantly increased to 1.92, indicating a substantial improvement in liquidity. The company had $1.92 in cash and cash equivalents for every dollar of current liabilities, reflecting a strong ability to cover short-term obligations with cash on hand.
In 2019, the cash ratio was 0.78, implying that Louisiana-Pacific Corp. had $0.78 in cash and cash equivalents for every dollar of current liabilities. This lower ratio suggests lower liquidity compared to the following years.
Overall, the fluctuation in Louisiana-Pacific Corp.'s cash ratio over the past five years indicates varying levels of liquidity, with improvements in some years and decreases in others. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's liquidity position.
Peer comparison
Dec 31, 2023