Louisiana-Pacific Corporation (LPX)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,557,000 | 1,502,000 | 1,419,000 | 1,450,000 | 1,433,000 | 1,361,000 | 1,484,000 | 1,613,000 | 1,235,000 | 1,368,000 | 1,433,000 | 1,404,000 | 1,234,000 | 1,142,000 | 1,000,000 | 984,000 | 991,000 | 1,213,000 | 1,278,000 | 1,273,000 |
| Debt-to-equity ratio | 0.22 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 | 0.00 | 0.28 | 0.00 | 0.00 | 0.00 | 0.28 | 0.00 | 0.00 | 0.00 | 0.35 | 0.00 | 0.27 | 0.27 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $347,000K ÷ $1,557,000K
= 0.22
Louisiana-Pacific Corp.'s debt-to-equity ratio has shown some variability over the past eight quarters, ranging from 0.21 to 0.27. The ratio indicates how much debt the company is using to finance its operations relative to shareholders' equity. A lower ratio is generally considered favorable as it suggests lower financial risk and reliance on debt financing.
In Q1 2022, the debt-to-equity ratio was at its lowest point for the period at 0.21, indicating a conservative capital structure with a higher proportion of equity financing. This could be seen as a positive sign from a creditors' perspective, as the company has a lower level of debt relative to equity.
The ratio increased in Q2 2023 to 0.27, indicating a higher level of debt utilization compared to Q1 2022. This could suggest that the company took on more debt to finance its operations or growth initiatives during that period. However, it is important to note that a single quarter's ratio may not provide a complete picture of the company's overall financial health.
Overall, the trend in Louisiana-Pacific Corp.'s debt-to-equity ratio shows some fluctuation but generally remains within a reasonable range. Investors and analysts may want to monitor the company's debt levels and assess how effectively it is managing its capital structure to support sustainable growth and financial stability.
Peer comparison
Dec 31, 2023