Louisiana-Pacific Corporation (LPX)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 530,000 | 287,000 | 1,250,000 | 1,734,000 | 615,000 |
| Revenue | US$ in thousands | 2,941,000 | 2,581,000 | 3,854,000 | 3,915,000 | 2,399,000 |
| Operating profit margin | 18.02% | 11.12% | 32.43% | 44.29% | 25.64% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $530,000K ÷ $2,941,000K
= 18.02%
Louisiana-Pacific Corporation's operating profit margin has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024. In 2020, the operating profit margin stood at 25.64%, indicating that the company generated 25.64 cents of operating profit for every dollar of revenue.
The operating profit margin saw a significant increase to 44.29% by the end of 2021, suggesting improved operational efficiency and cost management. However, this positive trend was not sustained, as the margin dropped to 32.43% in 2022. This decline may indicate challenges faced by the company in maintaining profitability.
The year 2023 witnessed a notable decrease in the operating profit margin to 11.12%, reflecting potential operational difficulties or financial pressures impacting the company's earnings. By the end of 2024, the operating profit margin showed a slight recovery to 18.02%, although it remained below the levels seen in 2021 and 2022.
Overall, the fluctuation in Louisiana-Pacific Corporation's operating profit margin over the years suggests varying degrees of operational efficiency, cost control, and profitability challenges. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors driving these changes and assess their implications for the company's future financial health.
Peer comparison
Dec 31, 2024