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LPX (Louisiana-Pacific) ROC (Joel Greenblatt) % : 25.32% (As of Sep. 2024)


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What is Louisiana-Pacific ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Louisiana-Pacific's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 25.32%.

The historical rank and industry rank for Louisiana-Pacific's ROC (Joel Greenblatt) % or its related term are showing as below:

LPX' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.02   Med: 34.6   Max: 144.96
Current: 29.41

During the past 13 years, Louisiana-Pacific's highest ROC (Joel Greenblatt) % was 144.96%. The lowest was -7.02%. And the median was 34.60%.

LPX's ROC (Joel Greenblatt) % is ranked better than
65.09% of 1716 companies
in the Construction industry
Industry Median: 17.77 vs LPX: 29.41

Louisiana-Pacific's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Louisiana-Pacific ROC (Joel Greenblatt) % Historical Data

The historical data trend for Louisiana-Pacific's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart

Louisiana-Pacific Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.54 57.30 144.96 84.53 15.82

Louisiana-Pacific Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC (Joel Greenblatt) % 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 35.90 15.19 32.83 43.49 25.32

Competitive Comparison of Louisiana-Pacific's ROC (Joel Greenblatt) %

For the Building Products & Equipment subindustry, Louisiana-Pacific's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Louisiana-Pacific's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Louisiana-Pacific's ROC (Joel Greenblatt) % falls into.



Louisiana-Pacific ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(161 + 373 + 32) - (261 + 0 + 0)
=305

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(136 + 372 + 31) - (304 + 0 + 0)
=235

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Louisiana-Pacific for the quarter that ended in Sep. 2024 can be restated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=468/( ( (1564 + max(305, 0)) + (1592 + max(235, 0)) )/ 2 )
=468/( ( 1869 + 1827 )/ 2 )
=468/1848
=25.32 %

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

* 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) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Louisiana-Pacific ROC (Joel Greenblatt) % Related Terms

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Louisiana-Pacific Business Description

Traded in Other Exchanges
Address
1610 West End Avenue, Suite 200, Nashville, TN, USA, 37203
Louisiana-Pacific is primarily an oriented strand board producer and also offers 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
Horton Ozey K Jr director 200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Lizanne C Gottung director 1610 WEST END AVENUE, SUITE 200, NASHVILLE TN 37203
William Bradley Southern officer: Senior Vice President 1610 WEST END AVENUE, NASHVILLE TN 37203
Michael W Blosser officer: SVP, Manufacturing Services 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219
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
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