Louisiana-Pacific Corporation (LPX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 222,000 | 160,000 | 71,000 | 126,000 | 369,000 | 469,000 | 503,000 | 624,000 | 358,000 | 607,000 | 590,000 | 645,000 | 535,000 | 420,000 | 259,000 | 488,000 | 181,000 | 304,000 | 348,000 | 361,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 18,000 | 10,000 | 9,000 | 11,000 | 12,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.86 | 0.60 | 0.27 | 0.55 | 1.10 | 1.09 | 1.08 | 1.36 | 1.02 | 1.46 | 1.70 | 1.82 | 1.91 | 1.77 | 1.18 | 2.28 | 0.74 | 1.41 | 1.52 | 1.52 |
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 of Louisiana-Pacific Corp. has shown variability over the past eight quarters as per the data provided. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In Q4 2022, the company had a relatively high cash ratio of 1.16, which suggests that it had sufficient cash on hand to cover its short-term liabilities comfortably. However, in the following quarters, the cash ratio fluctuated, reaching its lowest point of 0.34 in Q2 2023. This significant decrease may raise concerns about the company's liquidity and its ability to meet short-term financial obligations.
In Q1 2022, Q2 2022, and Q3 2022, the cash ratio remained relatively stable above 1, indicating a healthy liquidity position. However, the downward trend observed in the subsequent quarters may require further investigation to understand the reasons behind the declining cash ratio.
Overall, Louisiana-Pacific Corp.'s cash ratio analysis suggests some fluctuations in its liquidity position over the quarters, with Q2 2023 standing out as a point of potential concern due to the low cash ratio. Investors and stakeholders may want to monitor the company's cash management and liquidity closely to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023