La-Z-Boy Incorporated (LZB)
Inventory turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,182,790 | 1,165,360 | 1,165,360 | 1,340,730 | 1,384,700 |
| Inventory | US$ in thousands | 255,285 | 263,237 | 263,237 | 276,257 | 276,257 |
| Inventory turnover | 4.63 | 4.43 | 4.43 | 4.85 | 5.01 |
April 30, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,182,790K ÷ $255,285K
= 4.63
The inventory turnover ratios for La-Z-Boy Incorporated over the specified periods indicate a trend of fluctuating efficiency in managing inventory levels. As of April 29, 2023, the inventory turnover was recorded at 5.01, reflecting a relatively strong rate of inventory sales relative to inventory holdings during that fiscal period. By April 30, 2023, this ratio slightly declined to 4.85, suggesting a modest decrease in inventory turnover efficiency within that year.
Moving towards the subsequent year, the ratio further decreased to 4.43 by April 27 and April 30, 2024. This decline indicates a reduction in the frequency with which inventory is sold and replenished, which could be attributed to factors such as increased inventory levels, slower sales, or shifts in product demand.
However, in the following fiscal year, the inventory turnover improved to 4.63 by April 30, 2025, signaling a partial recovery in inventory management efficiency. Despite this positive movement, the ratio remains below the levels observed in April 2023, which may suggest ongoing challenges in inventory utilization or adjustments in sales dynamics.
Overall, the trend demonstrates a dip in inventory turnover over the two-year period, with a slight rebound in the latest report. This pattern warrants further analysis to determine underlying causes, such as changes in sales volume, inventory management strategies, or product mix variations, which could influence the company's operational efficiency and liquidity.
Peer comparison
Apr 30, 2025