Louisiana-Pacific Corporation (LPX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 347,000 | 346,000 | 346,000 | 348,000 | 348,000 |
| Total assets | US$ in thousands | 2,437,000 | 2,350,000 | 2,194,000 | 2,086,000 | 1,835,000 |
| Debt-to-assets ratio | 0.14 | 0.15 | 0.16 | 0.17 | 0.19 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $347,000K ÷ $2,437,000K
= 0.14
The debt-to-assets ratio of Louisiana-Pacific Corp. has shown a consistent declining trend over the past five years, decreasing from 0.19 in 2019 to 0.14 in 2023. This ratio indicates the proportion of the company's total assets that are financed by debt.
A lower debt-to-assets ratio generally indicates a lower financial risk for the company, as it suggests a smaller reliance on debt funding compared to the company's total assets. In this case, the decreasing trend in the ratio could imply that Louisiana-Pacific Corp. has been gradually reducing its debt levels relative to its asset base, which may be viewed positively by investors and creditors.
The declining debt-to-assets ratio could be a result of various factors such as improved financial performance, increased profitability, efficient management of debt levels, or strategic decisions to reduce debt burden. It also suggests that the company may have a stronger financial position and better debt management compared to previous years.
Overall, the decreasing trend in Louisiana-Pacific Corp.'s debt-to-assets ratio over the past five years is a positive indicator of the company's financial health and its ability to manage debt effectively.
Peer comparison
Dec 31, 2023