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Louisiana-Pacific (Louisiana-Pacific) Cash Conversion Cycle : 49.56 (As of Dec. 2023)


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What is Louisiana-Pacific Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Louisiana-Pacific's Days Sales Outstanding for the three months ended in Dec. 2023 was 17.47.
Louisiana-Pacific's Days Inventory for the three months ended in Dec. 2023 was 69.12.
Louisiana-Pacific's Days Payable for the three months ended in Dec. 2023 was 37.03.
Therefore, Louisiana-Pacific's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 49.56.


Louisiana-Pacific Cash Conversion Cycle Historical Data

The historical data trend for Louisiana-Pacific's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Louisiana-Pacific Cash Conversion Cycle Chart

Louisiana-Pacific Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.54 43.64 36.37 32.16 51.12

Louisiana-Pacific Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.47 49.71 48.74 40.25 49.56

Competitive Comparison of Louisiana-Pacific's Cash Conversion Cycle

For the Building Products & Equipment subindustry, Louisiana-Pacific's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Louisiana-Pacific's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, Louisiana-Pacific's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Louisiana-Pacific's Cash Conversion Cycle falls into.



Louisiana-Pacific Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Louisiana-Pacific's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=14.85+65.55-29.28
=51.12

Louisiana-Pacific's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=17.47+69.12-37.03
=49.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Louisiana-Pacific  (NYSE:LPX) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Louisiana-Pacific Cash Conversion Cycle Related Terms

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Louisiana-Pacific (Louisiana-Pacific) Business Description

Traded in Other Exchanges
Address
1610 West End Ave, Suite 200, Nashville, TN, USA, 37203
Louisiana-Pacific is primarily an oriented strand board producer, while offering engineered wood siding used in home construction and repair and remodel projects. The company is largely exposed to the North American housing market but has also established capacity in Brazil and Chile.
Executives
Michael W Blosser officer: SVP, Manufacturing Services 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219
Lizanne C Gottung director 1610 WEST END AVENUE, SUITE 200, NASHVILLE TN 37203
Derek Nelson Doyle officer: Principal Accounting Officer 1610 WEST END AVENUE, NASHVILLE TN 37203
Alan Haughie officer: EVP, CFO 860 RIDGE LAKE BLVD., MEMPHIS TN 38120
Jimmy Earl Mason officer: EVP & General Manager of OSB 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219-1711
Jose A Bayardo director 11700 OLD KATY ROAD SUITE 300, HOUSTON TX 77079
Robin H Everhart officer: SVP, CHRO 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219
Nicole C Daniel officer: SVP, General Counsel 414 UNION STREET, NASHVILLE TN 37219
William Bradley Southern officer: Senior Vice President 1610 WEST END AVENUE, NASHVILLE TN 37203
Stephen E. Macadam director C/O ENPRO INDUSTRIES, INC., 5605 CARNEGIE BLVD., STE. 500, CHARLOTTE NC 28209
Michael Sims officer: SVP Sales and Marketing 414 UNION STREET, NASHVILLE TN 37219
Neil Sherman officer: SVP EWP 414 UNION STREET, NASHVILLE TN 37129
Jason Paul Ringbloom officer: EVP OSB 414 UNION STREET, NASHVILLE TN 37219
Kurt M Landgraf director ONE RIVERFRONT PLAZA, CORNING NY 14831
Gary Cook director C/O TRIMERIS, INC., 3500 PARAMOUNT PARKWAY, MORRISVILLE NC 27560