Louisiana-Pacific Corporation (LPX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 178,000 | 1,086,000 | 1,377,000 | 499,000 | -5,000 |
| Total assets | US$ in thousands | 2,437,000 | 2,350,000 | 2,194,000 | 2,086,000 | 1,835,000 |
| ROA | 7.30% | 46.21% | 62.76% | 23.92% | -0.27% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $178,000K ÷ $2,437,000K
= 7.30%
Louisiana-Pacific Corp.'s return on assets (ROA) has shown significant fluctuations over the past five years. In 2023, the ROA was 7.30%, a substantial decrease from the previous year's ROA of 46.23%. This decrease indicates that the company's ability to generate profits from its assets weakened compared to the prior year.
In 2022, Louisiana-Pacific Corp. achieved a high ROA of 46.23%, signifying efficient asset utilization and profitability. The ROA further increased to 62.70% in 2021, demonstrating a substantial improvement in the company's profitability relative to its asset base.
However, in 2020, the ROA dropped to 23.96%, still reflecting a solid performance in generating profits from assets, albeit lower than the previous year. Notably, in 2019, the company experienced a negative ROA of -0.27%, indicating that the company was unable to generate profits from its assets during that period.
Overall, although Louisiana-Pacific Corp. has exhibited fluctuations in its ROA over the analyzed period, there is a general trend of positive profitability generation from its assets, with some variability in the degree of efficiency in utilizing its asset base for generating profits.
Peer comparison
Dec 31, 2023