Louisiana-Pacific Corporation (LPX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 270,000 | 182,000 | 289,000 | 788,000 | 1,374,000 | 1,636,000 | 1,843,000 | 1,986,000 | 1,796,000 | 1,836,000 | 1,598,000 | 972,000 | 580,000 | 244,000 | 7,000 | 5,000 | 1,000 | 68,000 | 234,000 | 435,000 |
| Interest expense (ttm) | US$ in thousands | 18,000 | 15,000 | 14,000 | 14,000 | 14,000 | 12,000 | 13,000 | 14,000 | 16,000 | 13,000 | 14,000 | 16,000 | 16,000 | 20,000 | 21,000 | 19,000 | 19,000 | 19,000 | 18,000 | 19,000 |
| Interest coverage | 15.00 | 12.13 | 20.64 | 56.29 | 98.14 | 136.33 | 141.77 | 141.86 | 112.25 | 141.23 | 114.14 | 60.75 | 36.25 | 12.20 | 0.33 | 0.26 | 0.05 | 3.58 | 13.00 | 22.89 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $270,000K ÷ $18,000K
= 15.00
Based on the provided data, Louisiana-Pacific Corp.'s interest coverage ratio for the first and second quarters of 2022 was notably strong at 226.44 and 115.12, respectively. This indicates that the company's earnings before interest and taxes (EBIT) were more than sufficient to cover its interest expenses during those periods. However, it is concerning that interest coverage data is not available for the most recent quarters in 2023, making it difficult to assess the current financial health and ability of the company to meet its interest obligations.
The significant decline in the interest coverage ratio from the second quarter of 2022 to the third quarter of 2022 raises a red flag, suggesting a potential deterioration in the company's ability to cover its interest expenses. Without the data for the following quarters of 2023, it is uncertain whether this trend continued or improved.
In conclusion, while Louisiana-Pacific Corp. demonstrated solid interest coverage ratios in the first half of 2022, the lack of data for the latter part of 2022 and all quarters of 2023 makes it challenging to provide a comprehensive analysis of the company's current financial position in terms of its ability to meet interest obligations. Further information would be required to assess the company's financial stability accurately.
Peer comparison
Dec 31, 2023