Louisiana-Pacific Corporation (LPX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.00 | 0.00 | 0.00 | 0.14 | 0.00 | 0.00 | 0.00 | 0.15 | 0.00 | 0.00 | 0.00 | 0.16 | 0.00 | 0.00 | 0.00 | 0.17 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.17 | 0.00 | 0.00 | 0.00 | 0.18 | 0.00 | 0.00 | 0.00 | 0.19 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.21 | 0.00 | 0.00 | 0.00 | 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 |
| 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 |
Louisiana-Pacific Corporation's solvency ratios indicate a stable financial position over the last few years. The Debt-to-Assets ratio has remained relatively low, with a slight increase from 0.14 in December 2023 to 0.15 in December 2022. This ratio illustrates that the company's assets are primarily financed through equity rather than debt.
Similarly, the Debt-to-Capital ratio has shown a consistent downward trend, decreasing from 0.22 in December 2021 to 0.17 in December 2024. This suggests that the company relies less on debt to finance its operations relative to its total capital structure.
The Debt-to-Equity ratio has also followed a decreasing pattern, indicating a reduction in financial leverage. The ratio declined from 0.28 in December 2021 to 0.21 in December 2024, showcasing the company's ability to finance its assets with equity rather than debt.
The Financial Leverage ratio reflects a decreasing trend from 2.17 in March 2020 to 1.54 in December 2024. This indicates that the company has been gradually reducing its reliance on debt financing and moving towards a more balanced capital structure.
Overall, the solvency ratios of Louisiana-Pacific Corporation demonstrate prudent financial management and a strong ability to meet its financial obligations, with a decreasing reliance on debt as a source of capital over the years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 41.00 | 28.10 | 30.55 | 20.95 | 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 |
The interest coverage ratio of Louisiana-Pacific Corporation has shown significant fluctuations over the reporting periods. The metric measures the company's ability to cover its interest expenses with operating income.
From March 31, 2020, to June 30, 2020, the interest coverage ratio was exceptionally low, indicating a weak ability to cover interest payments with operating earnings. However, there was a significant improvement by September 30, 2020, with a ratio of 12.20, suggesting a better ability to meet interest obligations.
Subsequently, the interest coverage ratio continued to rise steadily, reaching its peak at 141.86 on March 31, 2022. This substantial increase reflects a robust ability to pay interest expenses out of operating profits.
However, from June 30, 2022, onwards, we observe a decline in the interest coverage ratio, although it remains above 100, indicating a healthy cushion to cover interest expenses with operating income.
The decreasing trend in the interest coverage ratio towards December 31, 2024, should be monitored closely to ensure that Louisiana-Pacific Corporation can still comfortably meet its interest obligations in the future. Overall, the company has shown a mix of strengths and potential areas for improvement in managing its interest expenses relative to its operating income.