La-Z-Boy Incorporated (LZB)
Payables turnover
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,165,360 | 1,384,700 | 1,440,840 | 993,984 | 982,537 |
| Payables | US$ in thousands | 96,486 | 107,460 | 104,025 | 94,152 | 55,511 |
| Payables turnover | 12.08 | 12.89 | 13.85 | 10.56 | 17.70 |
April 27, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,165,360K ÷ $96,486K
= 12.08
The payables turnover ratio for La-Z-Boy Incorporated has exhibited a decreasing trend over the past five years. The ratio was 17.70 in April 2020, showing that the company was able to pay off its accounts payable almost 18 times during that year. However, this ratio has since decreased steadily to 12.08 in April 2024.
A lower payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, which could potentially strain relationships with vendors. It may also suggest that the company is holding onto its cash longer, which could impact liquidity and potentially indicate inefficiencies in managing payables.
It is important for La-Z-Boy Incorporated to closely monitor its payables turnover ratio and assess the factors contributing to the decrease in order to maintain healthy vendor relationships and ensure efficient cash flow management.
Peer comparison
Apr 27, 2024