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Louisiana-Pacific Beneish M-Score

: -3.13 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Louisiana-Pacific's Beneish M-Score or its related term are showing as below:

LPX' s Beneish M-Score Range Over the Past 10 Years
Min: -82.27   Med: -2.67   Max: 6.47
Current: -3.13

During the past 13 years, the highest Beneish M-Score of Louisiana-Pacific was 6.47. The lowest was -82.27. And the median was -2.67.


Louisiana-Pacific Beneish M-Score Historical Data

The historical data trend for Louisiana-Pacific's Beneish M-Score 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.27 -2.70 -1.84 -3.07 -2.49

Louisiana-Pacific Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.25 -2.59 -2.49 -2.42 -3.13

Competitive Comparison

For the Building Products & Equipment subindustry, Louisiana-Pacific's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Construction industry and Industrials sector, Louisiana-Pacific's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Louisiana-Pacific's Beneish M-Score falls into.



Louisiana-Pacific Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Louisiana-Pacific for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.5844+0.528 * 1.0654+0.404 * 0.7285+0.892 * 1.2182+0.115 * 1.1029
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0628+4.679 * -0.0762-0.327 * 1.0917
=-3.13

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $220 Mil.
Revenue was 1130 + 1337 + 992 + 1219 = $4,678 Mil.
Gross Profit was 518 + 661 + 336 + 549 = $2,064 Mil.
Total Current Assets was $1,208 Mil.
Total Assets was $2,547 Mil.
Property, Plant and Equipment(Net PPE) was $1,212 Mil.
Depreciation, Depletion and Amortization(DDA) was $126 Mil.
Selling, General, & Admin. Expense(SGA) was $268 Mil.
Total Current Liabilities was $464 Mil.
Long-Term Debt & Capital Lease Obligation was $390 Mil.
Net Income was 384 + 484 + 194 + 365 = $1,427 Mil.
Non Operating Income was 17 + -9 + -9 + 2 = $1 Mil.
Cash Flow from Operations was 483 + 425 + 201 + 511 = $1,620 Mil.
Total Receivables was $309 Mil.
Revenue was 1168 + 1017 + 860 + 795 = $3,840 Mil.
Gross Profit was 684 + 479 + 350 + 292 = $1,805 Mil.
Total Current Assets was $1,230 Mil.
Total Assets was $2,367 Mil.
Property, Plant and Equipment(Net PPE) was $975 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General, & Admin. Expense(SGA) was $207 Mil.
Total Current Liabilities was $352 Mil.
Long-Term Debt & Capital Lease Obligation was $375 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(220 / 4678) / (309 / 3840)
=0.04702864 / 0.08046875
=0.5844

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1805 / 3840) / (2064 / 4678)
=0.47005208 / 0.44121419
=1.0654

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1208 + 1212) / 2547) / (1 - (1230 + 975) / 2367)
=0.04986258 / 0.06844106
=0.7285

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=4678 / 3840
=1.2182

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(113 / (113 + 975)) / (126 / (126 + 1212))
=0.10386029 / 0.0941704
=1.1029

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(268 / 4678) / (207 / 3840)
=0.05728944 / 0.05390625
=1.0628

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((390 + 464) / 2547) / ((375 + 352) / 2367)
=0.33529643 / 0.30713984
=1.0917

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1427 - 1 - 1620) / 2547
=-0.0762

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Louisiana-Pacific has a M-score of -3.13 suggests that the company is unlikely to be a manipulator.


Louisiana-Pacific Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Louisiana-Pacific's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Louisiana-Pacific Business Description

Louisiana-Pacific logo
Traded in Other Exchanges
Address
414 Union Street, Suite 2000, Nashville, TN, USA, 37219
Louisiana-Pacific Corp is primarily an oriented strand board producer while offering engineered wood siding and engineered wood products used in home construction. The company's segment includes Siding; OSB; EWP and South America. It generates maximum revenue from the Siding segment. The Siding segment serves diverse end markets with a broad product offering of engineered wood siding, trim, and fascia, including LP SmartSide Trim and Siding, LP SmartSide ExpertFinish Trim and Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions.
Executives
Mason Jimmy Earl officer: EVP & General Manager of OSB 414 UNION STREET SUITE 2000 NASHVILLE TN 37219-1711
Bayardo Jose A director 11700 OLD KATY ROAD SUITE 300 HOUSTON TX 77079
Everhart Robin H officer: SVP, CHRO 414 UNION STREET SUITE 2000 NASHVILLE TN 37219
Blosser Michael W officer: SVP, Manufacturing Services 414 UNION STREET SUITE 2000 NASHVILLE TN 37219
Daniel Nicole C. officer: SVP, General Counsel 414 UNION STREET NASHVILLE TN 37219
Doyle Derek Nelson officer: Principal Accounting Officer 414 UNION STREET, SUITE 2000 NASHVILLE TN 37219
Grasberger F Nicholas Iii director 350 POPLAR CHURCH ROAD CAMP HILL PA 17011
Martin Joseph Richards officer: Interim General Counsel C/O LOUISIANA-PACIFIC CORPORATION 414 UNION STREET, SUITE 2000 NASHVILLE TN 37219
Macadam Stephen E. director C/O ENPRO INDUSTRIES, INC. 5605 CARNEGIE BLVD., STE. 500 CHARLOTTE NC 28209
Haughie Alan officer: EVP, CFO 860 RIDGE LAKE BLVD. MEMPHIS TN 38120
Kinney Michael Emory officer: Interim CFO 411 UNION STREET NASHVILLE TN 37219
Mann Timothy Jr officer: EVP, General Counsel 1000 ABERNATHY ROAD N.E. SUITE 1200 ATLANTA GA 30328
Ringbloom Jason Paul officer: EVP OSB 414 UNION STREET NASHVILLE TN 37219
Horton Ozey K Jr director 200 OLD WILSON BRIDGE ROAD COLUMBUS OH 43085
Embree Tracy A director 500 JACKSON STREET COLUMBUS IN 47201

Louisiana-Pacific Headlines

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