Louisiana-Pacific Corporation (LPX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 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 | 1.85 | 1.68 | 1.64 | 1.65 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,437,000K ÷ $1,557,000K
= 1.57
The financial leverage ratio of Louisiana-Pacific Corp. has been fluctuating over the past eight quarters, ranging from 1.56 to 1.75. The trend indicates that the company's reliance on debt to finance its operations has been varying. Lower ratios suggest a lower level of debt relative to equity, which may indicate a more conservative capital structure. Conversely, higher ratios imply higher financial risk due to increased debt financing.
In the most recent quarter, the financial leverage ratio decreased to 1.57 from 1.58 in the previous quarter. This slight decline may indicate a small reduction in the company's debt relative to its equity, which could signify a move towards a more balanced capital structure. On the other hand, the ratio stood at 1.64 in Q4 2022, which was on the higher side compared to the recent quarters, indicating a higher level of debt relative to equity back then.
Overall, fluctuations in the financial leverage ratio of Louisiana-Pacific Corp. suggest varying degrees of financial risk and capital structure decisions over the analyzed period. It would be beneficial for stakeholders to monitor these changes and assess their implications for the company's financial health and stability.
Peer comparison
Dec 31, 2023