Louisiana-Pacific Corporation (LPX)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,557,000	1,433,000	1,235,000	1,234,000	991,000
ROE		11.43%	75.79%	111.50%	40.44%	-0.50%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $178,000K ÷ $1,557,000K
= 11.43%

Louisiana-Pacific Corp.'s return on equity (ROE) has displayed significant fluctuations over the past five years, ranging from -0.50% in 2019 to 111.50% in 2021. The ROE dropped to 40.52% in 2020 before decreasing further to 11.43% in 2023. This decline in ROE over the past three years indicates a potential decrease in profitability and efficiency in generating returns for shareholders. It is important for the company to investigate the reasons behind this declining trend and implement strategies to improve its ROE in the future.

Peer comparison

Dec 31, 2023

Company name

Symbol

ROE

Louisiana-Pacific Corporation

LPX

11.43%