La-Z-Boy Incorporated (LZB)
Fixed asset turnover
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,047,030 | 2,047,030 | 2,349,430 | 2,349,430 | 2,356,810 |
| Property, plant and equipment | US$ in thousands | — | 298,224 | 278,578 | 278,578 | 253,144 |
| Fixed asset turnover | — | 6.86 | 8.43 | 8.43 | 9.31 |
April 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,047,030K ÷ $—K
= —
The fixed asset turnover ratio is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. It indicates the amount of revenue generated for each dollar of fixed assets.
Looking at the data provided for La-Z-Boy Incorporated, we observe a decline in the fixed asset turnover ratio over the period. In April 2022, the ratio was at 9.31, indicating that the company generated $9.31 in revenue for each dollar of fixed assets. However, by April 30, 2024, the ratio had decreased to 6.86.
A decreasing fixed asset turnover ratio may suggest that La-Z-Boy Incorporated is becoming less efficient in using its fixed assets to generate sales. This could be due to various reasons such as underutilization of assets, inefficient asset management, or declining sales relative to fixed asset base.
It is also worth noting that the ratio was not available for April 30, 2024, denoted by a dash. This missing data point makes it challenging to fully evaluate the trend in fixed asset turnover for that specific period.
Overall, the declining trend in fixed asset turnover for La-Z-Boy Incorporated raises concerns about the company's asset utilization efficiency and may warrant further investigation into the factors driving this decrease.
Peer comparison
Apr 30, 2024