La-Z-Boy Incorporated (LZB)
Inventory turnover
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,165,360 | 1,165,360 | 1,340,730 | 1,384,700 | 1,440,840 |
| Inventory | US$ in thousands | 263,237 | 263,237 | 276,257 | 276,257 | 303,191 |
| Inventory turnover | 4.43 | 4.43 | 4.85 | 5.01 | 4.75 |
April 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,165,360K ÷ $263,237K
= 4.43
The inventory turnover ratio for La-Z-Boy Incorporated has shown some fluctuations over the past five years. Starting at 4.75 in April 30, 2022, the ratio increased to 5.01 by April 29, 2023, indicating that the company managed to sell its inventory more efficiently. However, the ratio then decreased to 4.85 by April 30, 2023, suggesting a slight decrease in inventory turnover.
The trend continued as the inventory turnover ratio dropped further to 4.43 in both April 27, 2024, and April 30, 2024. This decline may imply that the company is holding onto its inventory for a longer period, which could potentially tie up capital and impact profitability.
Overall, the inventory turnover ratio for La-Z-Boy Incorporated has shown some variability in recent years, signaling potential shifts in inventory management strategies or changing market conditions that may require further investigation to optimize inventory efficiency.
Peer comparison
Apr 30, 2024