Louisiana-Pacific Corporation (LPX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,569,000 | 2,576,000 | 2,529,000 | 2,487,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,671,000 | 1,666,000 | 1,658,000 | 1,617,000 | 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 |
| Financial leverage ratio | 1.54 | 1.55 | 1.53 | 1.54 | 1.57 | 1.58 | 1.62 | 1.56 | 1.64 | 1.75 | 1.72 | 1.66 | 1.78 | 1.75 | 1.65 | 1.67 | 1.69 | 1.73 | 1.81 | 2.17 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,569,000K ÷ $1,671,000K
= 1.54
The financial leverage ratio of Louisiana-Pacific Corporation has been fluctuating over the years. It indicates the company's ability to meet its financial obligations by comparing its total debt to its equity. A higher financial leverage ratio signifies higher debt levels relative to equity.
Looking at the data provided, the trend shows a gradual decrease in the financial leverage ratio from 2.17 as of March 31, 2020, to 1.54 as of December 31, 2024. This downward trend suggests that the company has been reducing its reliance on debt financing and improving its equity position over time.
However, there are some fluctuations in the ratio during the period, with minor increases and decreases. For instance, there was a slight increase from 1.67 as of March 31, 2021, to 1.78 as of December 31, 2021, before dropping again.
Overall, a decreasing financial leverage ratio indicates a stronger financial position for Louisiana-Pacific Corporation, as it implies a decreasing reliance on debt to finance its operations and investments. This trend may be viewed positively by investors and creditors as it reduces the company's financial risk and enhances its ability to weather economic downturns.
Peer comparison
Dec 31, 2024