Louisiana-Pacific Corporation (LPX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 222,000 | 369,000 | 358,000 | 535,000 | 181,000 |
| Short-term investments | US$ in thousands | — | — | — | 11,000 | — |
| Receivables | US$ in thousands | 155,000 | 127,000 | 169,000 | 184,000 | 164,000 |
| Total current liabilities | US$ in thousands | 259,000 | 336,000 | 351,000 | 286,000 | 244,000 |
| Quick ratio | 1.46 | 1.48 | 1.50 | 2.55 | 1.41 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($222,000K
+ $—K
+ $155,000K)
÷ $259,000K
= 1.46
The quick ratio of Louisiana-Pacific Corp. has shown some fluctuations over the past five years. In 2023, the quick ratio stands at 1.54, which is unchanged from the previous year. This indicates that the company has $1.54 of liquid assets available to cover each dollar of current liabilities, suggesting a relatively healthy level of liquidity.
Looking back over the last five years, the quick ratio has varied notably. In 2021, the quick ratio was 1.62, showing a slight decrease compared to 2020 when it was 2.57, indicating a decrease in liquidity. This decline could be a concern as it suggests a potential weakening ability to meet short-term obligations with liquid assets quickly.
In 2019, the quick ratio was at 1.45, which was lower compared to the most recent two years, indicating slightly lower liquidity. It is important to note that while the quick ratio provides insights into short-term liquidity, it should be analyzed in conjunction with other financial ratios and factors to gain a comprehensive understanding of the company's overall financial health and ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023