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

Company name
Symbol
Cash ratio
Louisiana-Pacific Corporation
LPX
1.14
Koppers Holdings Inc
KOP
0.20
Trex Company Inc
TREX
0.02