Louisiana-Pacific Corporation (LPX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 269,000 | 1,374,000 | 1,794,000 | 637,000 | -20,000 |
| Interest expense | US$ in thousands | 17,000 | 14,000 | 15,000 | 17,000 | 18,000 |
| Interest coverage | 15.82 | 98.14 | 119.60 | 37.47 | -1.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $269,000K ÷ $17,000K
= 15.82
The interest coverage ratio for Louisiana-Pacific Corp. has shown a positive trend over the years, indicating the company's ability to meet its interest obligations from its operating income. In 2019, the interest coverage ratio was 7.30, which increased significantly to 38.71 in 2020 and further surged to 166.73 in 2021. However, the data for 2022 and 2023 is not available, making it difficult to provide a complete analysis for those years. Overall, the improving trend in interest coverage suggests that Louisiana-Pacific Corp. has been effectively managing its debt and generating sufficient income to cover interest expenses. This indicates a positive financial health and lower default risk for the company.
Peer comparison
Dec 31, 2023