Louisiana-Pacific Corporation (LPX)
Quick 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 | 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 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 155,000 | 181,000 | 172,000 | 148,000 | 127,000 | 171,000 | 219,000 | 320,000 | 169,000 | 248,000 | 310,000 | 264,000 | 184,000 | 228,000 | 175,000 | 172,000 | 164,000 | 183,000 | 177,000 | 165,900 |
| 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 |
| Quick ratio | 1.46 | 1.28 | 0.91 | 1.20 | 1.48 | 1.49 | 1.56 | 2.06 | 1.50 | 2.04 | 2.58 | 2.55 | 2.55 | 2.70 | 1.98 | 3.08 | 1.41 | 2.25 | 2.29 | 2.22 |
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 fluctuation over the past eight quarters. In Q1 2022, the quick ratio was the highest at 2.09, indicating a strong ability to meet short-term obligations with liquid assets. However, the quick ratio decreased steadily in the following quarters, reaching its lowest point of 0.99 in Q2 2023. This may suggest a potential liquidity strain during that period, as the company had almost equal levels of current assets and current liabilities.
In Q3 2023, there was a slight improvement in the quick ratio to 1.38, indicating a better ability to cover short-term liabilities with readily available assets. The quick ratio further increased to 1.54 in Q4 2023, bringing it back to the same level as in Q4 2022.
Overall, while the quick ratio of Louisiana-Pacific Corp. has experienced some fluctuations, it has generally remained above 1.0 in most quarters, indicating a relatively healthy liquidity position. However, management should continue to monitor and manage its short-term liquidity to ensure the company can meet its obligations efficiently.
Peer comparison
Dec 31, 2023