Louisiana-Pacific Corporation (LPX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,671,000 | 1,557,000 | 1,433,000 | 1,235,000 | 1,234,000 |
| Debt-to-capital ratio | 0.17 | 0.18 | 0.19 | 0.22 | 0.22 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $348,000K ÷ ($348,000K + $1,671,000K)
= 0.17
The debt-to-capital ratio of Louisiana-Pacific Corporation has shown a declining trend over the past five years. As of December 31, 2020, the ratio stood at 0.22, remaining stable through December 31, 2021. Subsequently, there was a noticeable decrease to 0.19 as of December 31, 2022, followed by a further decline to 0.18 by December 31, 2023, and reaching 0.17 by December 31, 2024.
This decreasing trend indicates that Louisiana-Pacific Corporation has been reducing its reliance on debt financing in relation to its total capital structure over the specified years. A decreasing debt-to-capital ratio is often viewed positively by investors and creditors, as it suggests an improving financial risk profile and potentially greater financial flexibility for the company.
Peer comparison
Dec 31, 2024