Louisiana-Pacific Corporation (LPX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 574,000 | 562,000 | 611,000 | 398,000 | 270,000 | 182,000 | 289,000 | 788,000 | 1,374,000 | 1,636,000 | 1,843,000 | 1,986,000 | 1,796,000 | 1,836,000 | 1,598,000 | 972,000 | 580,000 | 244,000 | 7,000 | 5,000 |
| Long-term debt | US$ in thousands | 348,000 | — | — | — | 347,000 | — | — | — | 346,000 | — | — | — | 346,000 | — | — | — | 348,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,671,000 | 1,666,000 | 1,658,000 | 1,617,000 | 1,557,000 | 1,502,000 | 1,419,000 | 1,450,000 | 1,433,000 | 1,361,000 | 1,484,000 | 1,613,000 | 1,235,000 | 1,368,000 | 1,433,000 | 1,404,000 | 1,234,000 | 1,142,000 | 1,000,000 | 984,000 |
| Return on total capital | 28.43% | 33.73% | 36.85% | 24.61% | 14.18% | 12.12% | 20.37% | 54.34% | 77.23% | 120.21% | 124.19% | 123.12% | 113.60% | 134.21% | 111.51% | 69.23% | 36.66% | 21.37% | 0.70% | 0.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $574,000K ÷ ($348,000K + $1,671,000K)
= 28.43%
Louisiana-Pacific Corporation's return on total capital has shown significant fluctuations over the periods provided. The ratio started at a modest 0.51% in March 2020 and remained relatively low until picking up to 21.37% by September 2020. The company's performance notably improved to 36.66% by the end of December 2020, indicating a strong utilization of its total capital.
The return on total capital continued to increase substantially throughout 2021, reaching a peak of 134.21% in September 2021. This exceptional performance was sustained through the first half of 2022, with returns exceeding 120%. However, there was a notable decline in the ratio by the end of 2022, dropping to 77.23%.
The trend continued in 2023 and most of 2024, with the return on total capital staying below the levels seen in 2021 and early 2022. Despite some fluctuations, the ratio generally stayed within the range of 10% to 40% from 2023 to 2024.
Overall, the return on total capital for Louisiana-Pacific Corporation demonstrates a mix of strong performance periods, especially in 2021, and some fluctuations and declines in subsequent years. It is essential for investors and stakeholders to closely monitor the company's capital utilization and profitability trends to assess its financial health and operational efficiency.
Peer comparison
Dec 31, 2024