Louisiana-Pacific Corporation (LPX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 269,000 | 1,374,000 | 1,794,000 | 637,000 | -20,000 |
| Long-term debt | US$ in thousands | 347,000 | 346,000 | 346,000 | 348,000 | 348,000 |
| Total stockholders’ equity | US$ in thousands | 1,557,000 | 1,433,000 | 1,235,000 | 1,234,000 | 991,000 |
| Return on total capital | 14.13% | 77.23% | 113.47% | 40.27% | -1.49% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $269,000K ÷ ($347,000K + $1,557,000K)
= 14.13%
Louisiana-Pacific Corp.'s return on total capital has fluctuated over the past five years. The company experienced a substantial decrease in 2023 compared to the exceptionally high return in 2022, which may indicate a decline in the efficiency of utilizing its total capital. The return on total capital was significantly lower in 2019, suggesting that the company may have made operational improvements in the following years to increase its profitability. However, the return in 2021 was notably high, indicating a strong performance in efficiently generating profits from its total capital. It is essential for investors and stakeholders to closely monitor Louisiana-Pacific Corp.'s future financial performance to assess its ability to sustain and potentially improve its return on total capital in the long term.
Peer comparison
Dec 31, 2023