La-Z-Boy Incorporated (LZB)
Days of sales outstanding (DSO)
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 22, 2022 | Oct 23, 2021 | Jul 24, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 14.70 | 17.21 | 15.83 | 20.09 | 18.72 | 17.97 | 15.44 | 15.61 | 12.83 | 13.44 | 12.01 | 13.94 | 12.45 | 12.24 | 12.37 | 16.18 | 17.15 | 11.65 | 11.49 | 13.20 | |
| DSO | days | 24.82 | 21.21 | 23.06 | 18.17 | 19.50 | 20.31 | 23.63 | 23.38 | 28.46 | 27.15 | 30.38 | 26.19 | 29.33 | 29.82 | 29.50 | 22.55 | 21.28 | 31.34 | 31.76 | 27.64 |
April 27, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.70
= 24.82
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that the company is more efficient in collecting its accounts receivable, whereas a higher DSO may indicate potential issues with the company's credit policies or collection efforts.
Analyzing the trend of La-Z-Boy Incorporated's DSO over the past few quarters, we observe fluctuations in the metric. The DSO has ranged from a low of 18.17 days to a high of 31.76 days. Generally, a lower DSO is preferable as it signifies quicker collection of receivables and better liquidity.
Looking at the latest DSO figure of 24.82 days (as of April 27, 2024), compared to previous quarters, it has increased compared to the previous quarter's DSO of 21.21 days (Jan 27, 2024). This uptick may indicate a slight deterioration in the company's collection efficiency.
However, it's important to consider external factors and industry benchmarks when interpreting DSO figures. Companies in the furniture industry, like La-Z-Boy Incorporated, may experience seasonal fluctuations in sales and collection cycles. It would be beneficial to compare La-Z-Boy's DSO to industry peers to assess its efficiency in managing receivables.
In conclusion, La-Z-Boy Incorporated's DSO has shown some variability over the quarters, with the latest figure indicating a slight increase. Monitoring DSO trends and implementing effective credit and collection policies can help the company maintain healthy cash flows and financial stability.
Peer comparison
Apr 27, 2024