Louisiana-Pacific Corporation (LPX)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,000 | 68,000 | 234,000 | 435,000 |
| Long-term debt | US$ in thousands | 347,000 | — | — | — | 346,000 | — | — | — | 346,000 | — | — | — | 348,000 | — | — | — | 348,000 | — | 348,000 | 347,400 |
| Total stockholders’ equity | US$ in thousands | 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 | 991,000 | 1,213,000 | 1,278,000 | 1,273,000 |
| Return on total capital | 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% | 0.07% | 5.61% | 14.39% | 26.85% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $270,000K ÷ ($347,000K + $1,557,000K)
= 14.18%
Louisiana-Pacific Corp.'s return on total capital has shown volatility over the past eight quarters. In Q1 2022, the return on total capital was notably high at 104.03%, suggesting the company effectively utilized its total capital to generate profits. This was followed by a slight decrease in Q2 2022 to 100.60% and further decline in Q3 2022 to 89.52%.
However, starting from Q4 2022, there was a significant drop in return on total capital to 69.61%, which continued into Q1 2023 at 37.67%. This suggests a decline in the company's ability to generate profits from its total capital during these periods.
Despite the downturn, there was a modest recovery in Q2 2023 with a return on total capital of 15.60%, followed by a further improvement in Q3 2023 to 14.18%. The latest data from Q4 2023 shows a return on total capital of 17.80%, indicating a positive trajectory in utilizing the company's total capital to generate returns.
Overall, the fluctuation in Louisiana-Pacific Corp.'s return on total capital over the past eight quarters reflects varying levels of efficiency in capital deployment and profitability generation. Further analysis and monitoring of this metric will be essential to understand the company's financial performance and strategic direction.
Peer comparison
Dec 31, 2023