Louisiana-Pacific Corporation (LPX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 420,000 | 178,000 | 1,086,000 | 1,377,000 | 499,000 |
| Total assets | US$ in thousands | 2,569,000 | 2,437,000 | 2,350,000 | 2,194,000 | 2,086,000 |
| ROA | 16.35% | 7.30% | 46.21% | 62.76% | 23.92% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $420,000K ÷ $2,569,000K
= 16.35%
Louisiana-Pacific Corporation's return on assets (ROA) has shown significant fluctuations over the five-year period from 2020 to 2024.
In 2020, the company's ROA was strong at 23.92%, indicating that the company was generating a substantial return on its assets. This reflects an efficient use of assets to generate profits.
In 2021, the ROA increased substantially to 62.76%, showcasing a significant improvement in the company's efficiency in generating profits from its assets. This could be a result of improved operational performance or strategic decisions.
However, in 2022, there was a slight decrease in ROA to 46.21%. While still a healthy return, this decline may warrant further investigation into factors that may have impacted the company's asset efficiency.
In 2023, the ROA sharply dropped to 7.30%, indicating a significant decline in the company's ability to generate profits from its assets. This decrease could be attributed to various factors such as decreased sales, higher expenses, or asset impairment.
By 2024, the ROA recovered to 16.35%, showing some improvement from the previous year but still below the levels seen in 2021 and 2022. This suggests that the company may be working towards improving its asset utilization and profitability.
Overall, Louisiana-Pacific Corporation's ROA has exhibited fluctuations over the years, highlighting the importance of monitoring and analyzing this metric to assess the company's operational efficiency and profitability. Tracking these changes can provide insights into the company's performance and help in making informed investment decisions.
Peer comparison
Dec 31, 2024