Louisiana-Pacific Corporation (LPX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 287,000 | 1,250,000 | 1,734,000 | 615,000 | -20,000 |
| Total assets | US$ in thousands | 2,437,000 | 2,350,000 | 2,194,000 | 2,086,000 | 1,835,000 |
| Operating ROA | 11.78% | 53.19% | 79.03% | 29.48% | -1.09% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $287,000K ÷ $2,437,000K
= 11.78%
Louisiana-Pacific Corp.'s operating return on assets (operating ROA) has fluctuated over the past five years. In 2023, the operating ROA was 13.78%, significantly lower than the 52.58% recorded in 2022 and the 83.33% in 2021. This decrease indicates a decline in the company's operating efficiency in generating profits from its assets in 2023 compared to the two preceding years.
However, despite the drop in 2023, the company's operating ROA remained comparatively higher than in 2020 and 2019 when it was 31.48% and 3.98%, respectively. This suggests an overall improvement in the company's operating efficiency over the five-year period, with the performance peaking in 2021.
It is important to further investigate the reasons behind the fluctuations in operating ROA to assess the company's management effectiveness, operational strategies, and overall financial health.
Peer comparison
Dec 31, 2023