Louisiana-Pacific Corporation (LPX)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 832,000 | 593,000 | 1,498,000 | 1,963,000 | 833,000 |
| Revenue | US$ in thousands | 2,941,000 | 2,581,000 | 3,854,000 | 3,915,000 | 2,399,000 |
| Gross profit margin | 28.29% | 22.98% | 38.87% | 50.14% | 34.72% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $832,000K ÷ $2,941,000K
= 28.29%
Louisiana-Pacific Corporation's gross profit margin has exhibited fluctuations over the past five years. In 2020, the gross profit margin stood at 34.72%, showing an increase to 50.14% in 2021, suggesting improved efficiency in generating profits from sales. However, there was a decline in 2022 to 38.87%, indicating potential challenges impacting profitability.
The following year, in 2023, the gross profit margin further dropped to 22.98%, reflecting a significant decrease in the percentage of revenue retained as gross profit. This substantial decline could be a cause for concern, pointing to potential operational or cost issues within the company.
In the most recent year, 2024, the gross profit margin slightly improved to 28.29%. Although it has shown a recovery from the lowest point in 2023, the margin remains below the levels seen in 2021 and 2022, indicating that Louisiana-Pacific Corporation may still be facing profitability challenges.
Overall, the fluctuating trend in the gross profit margin of Louisiana-Pacific Corporation suggests varying levels of operational efficiency and profitability over the past five years, calling for further investigation into the factors influencing these changes.
Peer comparison
Dec 31, 2024