Louisiana-Pacific Corporation (LPX)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 348,000 | 347,000 | 346,000 | 346,000 | 348,000 |
| Total assets | US$ in thousands | 2,569,000 | 2,437,000 | 2,350,000 | 2,194,000 | 2,086,000 |
| Debt-to-assets ratio | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $348,000K ÷ $2,569,000K
= 0.14
Louisiana-Pacific Corporation's debt-to-assets ratio has shown a declining trend over the years from 0.17 in 2020 to 0.14 in 2024. This indicates that the company has been successful in reducing its level of debt relative to its total assets, which can be a positive sign of financial health and effective debt management. A lower debt-to-assets ratio implies that a lower proportion of the company's assets are financed through debt, reducing financial risk and potential liquidity concerns. Overall, the decreasing trend in the debt-to-assets ratio suggests that Louisiana-Pacific Corporation has been progressively strengthening its financial position by managing its debt effectively relative to its total assets.
Peer comparison
Dec 31, 2024