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Louisiana-Pacific Altman Z-Score

: 7.94 (As of Today)
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Good Sign:

Altman Z-score of 7.94 is strong.

Louisiana-Pacific has a Altman Z-Score of 7.94, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

LPX' s Altman Z-Score Range Over the Past 10 Years
Min: 0.44   Med: 2.75   Max: 10
Current: 7.94

During the past 13 years, Louisiana-Pacific's highest Altman Z-Score was 10.00. The lowest was 0.44. And the median was 2.75.


Louisiana-Pacific Altman Z-Score Historical Data

The historical data trend for Louisiana-Pacific's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.80 5.46 4.62 6.38 10.00

Louisiana-Pacific Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-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 8.91 8.74 10.00 8.46 7.68

Competitive Comparison

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

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

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



Louisiana-Pacific Altman Z-Score Calculation

Altman 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.

Louisiana-Pacific's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.2921+1.4*0.5909+3.3*0.7185+0.6*4.2586+1.0*1.8367
=7.94

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $2,547 Mil.
Total Current Assets was $1,208 Mil.
Total Current Liabilities was $464 Mil.
Retained Earnings was $1,505 Mil.
Pre-Tax Income was 463 + 621 + 249 + 486 = $1,819 Mil.
Interest Expense was -3 + -3 + -1 + -4 = $-11 Mil.
Revenue was 1130 + 1337 + 992 + 1219 = $4,678 Mil.
Market Cap (Today) was $4,510 Mil.
Total Liabilities was $1,059 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1208 - 464)/2547
=0.2921

X2=Retained Earnings/Total Assets
=1505/2547
=0.5909

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1819 - -11)/2547
=0.7185

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=4509.888/1059
=4.2586

X5=Revenue/Total Assets
=4678/2547
=1.8367

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Louisiana-Pacific has a Altman Z-Score of 7.94 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Louisiana-Pacific  (NYSE:LPX) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Louisiana-Pacific Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Louisiana-Pacific's Altman Z-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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