Louisiana-Pacific Corporation (LPX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,671,000 | 1,557,000 | 1,433,000 | 1,235,000 | 1,234,000 |
| ROE | 25.13% | 11.43% | 75.79% | 111.50% | 40.44% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $420,000K ÷ $1,671,000K
= 25.13%
Louisiana-Pacific Corporation's return on equity (ROE) has exhibited fluctuations over the years. In 2020, the ROE stood at 40.44%, indicating that for every dollar of equity, the company generated a profit of 40.44 cents. The substantial increase in ROE to 111.50% in 2021 suggests a significant improvement in profitability and efficiency in the utilization of equity.
However, there was a notable decline in ROE to 75.79% in 2022, indicating a decrease in the profitability relative to the equity invested. The following year, in 2023, the ROE dropped further to 11.43%, signaling a considerable reduction in the company's ability to generate profits from shareholders' equity.
Although there was a slight improvement in 2024, with the ROE rising to 25.13%, it still remained below the levels seen in the earlier years. Overall, the fluctuations in Louisiana-Pacific Corporation's ROE demonstrate varying levels of financial performance and efficiency in utilizing shareholder equity over the years. Further analysis would be required to understand the factors contributing to these fluctuations and their implications for the company's financial health.
Peer comparison
Dec 31, 2024