Louisiana-Pacific Corporation (LPX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 340,000 | 222,000 | 369,000 | 358,000 | 535,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 11,000 |
| Receivables | US$ in thousands | 131,000 | 155,000 | 127,000 | 169,000 | 184,000 |
| Total current liabilities | US$ in thousands | 299,000 | 259,000 | 336,000 | 351,000 | 286,000 |
| Quick ratio | 1.58 | 1.46 | 1.48 | 1.50 | 2.55 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($340,000K
+ $—K
+ $131,000K)
÷ $299,000K
= 1.58
The quick ratio of Louisiana-Pacific Corporation has shown a gradual decline over the past few years, decreasing from 2.55 in December 31, 2020, to 1.50 in December 31, 2021, and further declining to 1.48 in December 31, 2022, and 1.46 in December 31, 2023. However, there was a slight improvement to 1.58 in December 31, 2024.
Interpreting the quick ratio, it indicates the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities. Even though the ratio has decreased over the years, the company still maintains a quick ratio above 1, suggesting that it can meet its short-term obligations. However, the decreasing trend may warrant some attention to ensure the company's liquidity position remains strong in the future.
Peer comparison
Dec 31, 2024