Louisiana-Pacific Corporation (LPX)
Debt-to-equity 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-equity ratio | 0.21 | 0.22 | 0.24 | 0.28 | 0.28 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $348,000K ÷ $1,671,000K
= 0.21
Louisiana-Pacific Corporation's debt-to-equity ratio has shown a consistent downward trend over the years, decreasing from 0.28 in 2020 to 0.21 in 2024. This indicates that the company has been reducing its reliance on debt financing in relation to equity, which can be seen as a positive trend in terms of financial stability and risk management. A lower debt-to-equity ratio suggests that the company is less leveraged and has a stronger equity base to support its operations. This improving ratio may indicate prudent financial management by Louisiana-Pacific Corporation, potentially enhancing its ability to weather economic downturns and pursue growth opportunities.
Peer comparison
Dec 31, 2024