La-Z-Boy Incorporated (LZB)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,165,357 | 1,153,116 | 1,203,106 | 1,276,124 | 1,373,262 | 1,485,390 | 1,500,456 | 1,491,202 | 1,440,842 | 1,324,883 | 1,241,619 | 1,147,590 | 993,984 | 892,179 | 899,453 | 905,711 | 982,537 | 1,050,980 | 1,052,474 | 1,052,579 |
| Inventory | US$ in thousands | 263,237 | 276,833 | 268,480 | 269,429 | 276,257 | 303,553 | 342,728 | 331,846 | 303,191 | 315,595 | 285,770 | 264,454 | 226,137 | 212,114 | 188,652 | 180,401 | 181,643 | 198,567 | 205,124 | 197,701 |
| Inventory turnover | 4.43 | 4.17 | 4.48 | 4.74 | 4.97 | 4.89 | 4.38 | 4.49 | 4.75 | 4.20 | 4.34 | 4.34 | 4.40 | 4.21 | 4.77 | 5.02 | 5.41 | 5.29 | 5.13 | 5.32 |
April 27, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,165,357K ÷ $263,237K
= 4.43
The inventory turnover of La-Z-Boy Incorporated has been relatively stable over the past few years, with values ranging from 4.17 to 5.41. This ratio indicates how efficiently the company is managing its inventory by measuring the number of times it sells and replaces its inventory within a given period.
A higher inventory turnover ratio suggests that the company is selling its products quickly and efficiently, which can lead to better cash flow and lower holding costs. La-Z-Boy's inventory turnover ratios have generally been above 4, indicating that the company is effectively managing its inventory.
It is important to note that a consistently high inventory turnover ratio may also indicate that the company is understocked, which could lead to potential stockouts and lost sales opportunities. Conversely, a low inventory turnover ratio may indicate overstocking, leading to higher holding costs and potential obsolescence.
Overall, based on the inventory turnover ratios provided, La-Z-Boy Incorporated appears to have a healthy inventory management system in place, balancing efficient sales with prudent inventory levels.
Peer comparison
Apr 27, 2024
Apr 27, 2024