La-Z-Boy Incorporated (LZB)

Short-term

Turnover ratios

La-Z-Boy Incorporated's activity ratios provide insights into the efficiency of managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- La-Z-Boy's inventory turnover has fluctuated slightly over the years, ranging from 4.43 to 5.01 times. The company manages its inventory well, with a moderate turnover rate that indicates efficient sales of products relative to its inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio reflects the company's ability to collect cash from customers. La-Z-Boy demonstrated a notable figure of 18.72 in April 29, 2023, although there is missing data for other years. A higher ratio suggests faster collection of receivables, which can improve cash flow and liquidity.

3. Payables Turnover:
- Payables turnover measures how quickly the company pays off its suppliers. La-Z-Boy's payables turnover remained relatively stable around 12 in the available data, signaling a consistent payment cycle and good relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio highlights how efficiently La-Z-Boy utilizes its working capital to generate sales revenue. The decreasing trend from 8.54 to 5.12 indicates a decline in the company's ability to generate sales using its working capital efficiently over the reported period.

Overall, La-Z-Boy has shown commendable efficiency in managing its inventory turnover and maintaining stable payables turnover. However, the decreasing trend in working capital turnover suggests a potential area for improvement in utilizing working capital effectively to drive sales.

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Average number of days

La-Z-Boy Incorporated's activity ratios provide insights into its operational efficiency and effectiveness in managing its resources.

1. Days of Inventory on Hand (DOH):
- April 30, 2022: 76.81 days
- April 29, 2023: 72.82 days
- April 30, 2023: 75.21 days
- April 27, 2024: 82.45 days
- April 30, 2024: 82.45 days

The trend in the DOH indicates that La-Z-Boy's inventory turnover has been relatively stable, with a slight increase in 2024. A lower DOH is generally preferable as it implies quicker turnover of inventory, suggesting efficient management of inventory levels.

2. Days of Sales Outstanding (DSO):
- April 30, 2022: Not provided
- April 29, 2023: 19.50 days
- April 30, 2023: Not provided
- April 27, 2024: 24.82 days
- April 30, 2024: Not provided

The DSO measures how long it takes for the company to collect revenue after a sale. La-Z-Boy's DSO has been improving over the years, indicating better receivables management and faster collection of sales proceeds.

3. Number of Days of Payables:
- April 30, 2022: Not provided
- April 29, 2023: 28.33 days
- April 30, 2023: Not provided
- April 27, 2024: 30.22 days
- April 30, 2024: Not provided

The number of days of payables shows how long it takes the company to pay its suppliers. La-Z-Boy's payables turnover has been relatively steady, suggesting a consistent approach in managing its payables.

In conclusion, La-Z-Boy's activity ratios reflect a stable inventory turnover, improving efficiency in collections, and consistent management of payables. These ratios indicate a balanced approach to managing the company's working capital and operational activity.

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Long-term

The Fixed Asset Turnover ratio measures the efficiency with which La-Z-Boy Incorporated utilizes its fixed assets to generate revenue. A decreasing trend in this ratio over the years indicates a decline in the company's ability to generate sales relative to its investment in fixed assets.

In the case of La-Z-Boy Incorporated, the Fixed Asset Turnover ratio has been on a downward trend from 9.31 in April 2022 to 6.86 in April 27, 2024. This decline suggests that the company may not be effectively utilizing its fixed assets to generate sales.

Total Asset Turnover, on the other hand, indicates how efficiently the company is using all its assets to generate revenue. A decreasing Total Asset Turnover ratio may highlight inefficiencies in managing both fixed and current assets to generate sales.

For La-Z-Boy Incorporated, the Total Asset Turnover ratio has decreased from 1.22 in April 30, 2022, to 1.07 in April 30, 2024. This shows that the company's overall efficiency in generating revenue from its total assets has declined over the years.

In conclusion, both the Fixed Asset Turnover and Total Asset Turnover ratios for La-Z-Boy Incorporated have shown a decreasing trend, indicating potential weaknesses in asset utilization and efficiency in generating sales.