Louisiana-Pacific Corporation (LPX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 340,000 | 222,000 | 369,000 | 358,000 | 535,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 11,000 |
| Total current liabilities | US$ in thousands | 299,000 | 259,000 | 336,000 | 351,000 | 286,000 |
| Cash ratio | 1.14 | 0.86 | 1.10 | 1.02 | 1.91 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($340,000K
+ $—K)
÷ $299,000K
= 1.14
The cash ratio of Louisiana-Pacific Corporation has exhibited some fluctuations over the years based on the provided data.
As of December 31, 2020, the cash ratio was relatively high at 1.91, indicating that the company had a healthy level of cash to cover its current liabilities. However, this ratio decreased to 1.02 by December 31, 2021, suggesting a potential reduction in the company's ability to cover short-term obligations solely with its available cash.
By December 31, 2022, the cash ratio slightly improved to 1.10, showing a slight recovery in the company's liquidity position. However, by December 31, 2023, the ratio declined to 0.86, signaling a potential strain on the company's ability to pay off its short-term liabilities with its existing cash reserves.
Finally, by December 31, 2024, the cash ratio increased to 1.14, indicating a positive uptick in the company's liquidity position compared to the previous year.
Overall, the fluctuations in Louisiana-Pacific Corporation's cash ratio suggest varying degrees of liquidity challenges and strengths over the years, which may warrant further investigation into the company's cash management practices and financial health.
Peer comparison
Dec 31, 2024