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← Louisiana-Pacific

The business behind the dividend

MeasureLPXMedianFormula
Return on equity8.4%11.7%Net income ÷ shareholders’ equity
Return on capital employed10.1%10.1%Operating income ÷ (equity + total debt)
Owner earnings$-7.00m$632.00mNet income + depreciation & amortisation − capital expenditure
Free cash flow$91.00m$746.10mOperating cash flow − capital expenditure
Operating margin7.7%15.0%Operating income ÷ revenue
Net margin5.4%10.2%Net income ÷ revenue
Debt to equity0.20x0.79xTotal debt ÷ shareholders’ equity
Interest cover12.29x4.43xOperating income ÷ interest expense
Current ratio2.78x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capital0.67x2.30xLong-term debt ÷ (current assets − current liabilities)
Cash conversion2.62x1.78xOperating cash flow ÷ net income

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity8.4%25.1%11.4%75.8%111.5%40.4%-0.5%23.2%24.3%12.5%23.2%
Return on capital employed10.1%26.3%15.1%70.3%109.7%38.9%-1.5%25.6%26.9%13.4%25.6%
Operating margin7.7%18.0%11.1%32.4%44.3%25.6%-0.9%18.6%19.5%9.4%18.0%
Net margin5.4%14.3%6.9%28.2%35.2%20.8%-0.2%14.0%14.3%6.7%14.0%
Debt to equity0.20x0.21x0.22x0.24x0.28x0.28x0.35x0.21x0.23x0.32x0.23x
Current ratio2.78x2.86x3.00x2.54x2.54x3.47x2.54x4.91x5.03x4.41x2.86x
Cash conversion2.62x1.44x1.78x1.05x1.08x1.32x1.29x1.22x2.29x1.32x

How it compares in materials

Among the 35 materials companies here measured on free cash flow, Louisiana-Pacific pays out less than 7 of them. The median for that group is 40.8%, against this company’s 85.7%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 47 in materials →