Louisiana-Pacific Corporation (LPX)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 530,000 544,000 589,000 403,000 288,000 258,000 269,000 723,000 1,249,000 1,417,000 1,693,000 1,865,000 1,740,000 1,789,000 1,583,000 1,002,000 615,000 266,000 32,000 2,000
Total assets US$ in thousands 2,569,000 2,576,000 2,529,000 2,487,000 2,437,000 2,380,000 2,302,000 2,259,000 2,350,000 2,383,000 2,547,000 2,670,000 2,194,000 2,400,000 2,367,000 2,343,000 2,086,000 1,973,000 1,807,000 2,132,000
Operating ROA 20.63% 21.12% 23.29% 16.20% 11.82% 10.84% 11.69% 32.01% 53.15% 59.46% 66.47% 69.85% 79.31% 74.54% 66.88% 42.77% 29.48% 13.48% 1.77% 0.09%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $530,000K ÷ $2,569,000K
= 20.63%

Louisiana-Pacific Corporation's operating return on assets (ROA) has exhibited significant variation over the given periods. The trend shows a fluctuation in the efficiency with which the company generates operating income relative to its total assets.

Starting at a modest level of 0.09% as of March 31, 2020, the operating ROA saw a notable increase to 79.31% by December 31, 2021. This steep rise signifies a substantial improvement in the company's ability to utilize its assets to generate operating profits efficiently.

Following this peak, the operating ROA experienced slight fluctuations but remained relatively high until June 30, 2022. Subsequently, it began to decline gradually before fluctuating within a lower range from March 31, 2023, onwards, with a value of 20.63% by December 31, 2024.

The overall trend suggests that Louisiana-Pacific Corporation's operational efficiency in generating profits from its assets has shown significant variability. It is essential for stakeholders to monitor this metric closely to assess the company's ability to effectively utilize its assets in generating operating income.


Peer comparison

Dec 31, 2024

Company name
Symbol
Operating ROA
Louisiana-Pacific Corporation
LPX
20.63%
Koppers Holdings Inc
KOP
10.63%
Trex Company Inc
TREX
23.08%