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Louisiana-Pacific Financial Strength

: 8 (As of Jun. 2022)
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Louisiana-Pacific has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Louisiana-Pacific Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Louisiana-Pacific's Interest Coverage for the quarter that ended in Jun. 2022 was 149.67. Louisiana-Pacific's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.09. As of today, Louisiana-Pacific's Altman Z-Score is 7.95.


Competitive Comparison

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

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

* The bar in red indicates where Louisiana-Pacific's Financial Strength falls into.



Louisiana-Pacific Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Louisiana-Pacific's Interest Expense for the months ended in Jun. 2022 was $-3 Mil. Its Operating Income for the months ended in Jun. 2022 was $449 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $390 Mil.

Louisiana-Pacific's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*449/-3
=149.67

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Louisiana-Pacific's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 390) / 4520
=0.09

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Louisiana-Pacific has a Z-score of 7.95, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 7.95 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Louisiana-Pacific has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Louisiana-Pacific Financial Strength Related Terms

Thank you for viewing the detailed overview of Louisiana-Pacific's Financial Strength 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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