Louisiana-Pacific Corporation (LPX)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 347,000 | — | — | — | 346,000 | — | — | — | 346,000 | — | — | — | 348,000 | — | — | — | 348,000 | — | 348,000 | 347,400 |
| Total assets | US$ in thousands | 2,437,000 | 2,380,000 | 2,302,000 | 2,259,000 | 2,350,000 | 2,383,000 | 2,547,000 | 2,670,000 | 2,194,000 | 2,400,000 | 2,367,000 | 2,343,000 | 2,086,000 | 1,973,000 | 1,807,000 | 2,132,000 | 1,835,000 | 2,043,000 | 2,090,000 | 2,094,300 |
| Debt-to-assets ratio | 0.14 | 0.00 | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.16 | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 | 0.00 | 0.00 | 0.19 | 0.00 | 0.17 | 0.17 |
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 relatively stable trends over the past eight quarters. The ratio has ranged between 0.13 and 0.16 during this period, indicating that the company maintains a conservative level of leverage compared to its total assets.
A debt-to-assets ratio of 0.14 in Q4 2023 suggests that for every dollar of assets, the company has $0.14 of debt. This indicates that Louisiana-Pacific Corp. relies more on equity financing rather than debt to fund its operations and investments.
The consistency in the ratio over time implies that the company has been managing its debt levels effectively and is not taking on excessive financial risk. However, it is essential to monitor changes in the ratio in the future to ensure that the company's financial health remains stable and sustainable.
Peer comparison
Dec 31, 2023