La-Z-Boy Incorporated (LZB)
Payables 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 |
| Payables | US$ in thousands | 95,984 | 96,486 | 96,486 | 107,460 | 107,460 |
| Payables turnover | 12.32 | 12.08 | 12.08 | 12.48 | 12.89 |
April 30, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,182,790K ÷ $95,984K
= 12.32
The payables turnover ratio for La-Z-Boy Incorporated, based on the provided data, exhibits a slight downward trend over the year ending April 29, 2023, with a value of 12.89. This ratio decreases marginally to 12.48 by April 30, 2023. Moving forward, the figure continues to decline, reaching 12.08 by April 27, 2024, and maintaining this same level at April 30, 2024. By April 30, 2025, the ratio increases modestly to 12.32.
This trend suggests that the company's efficiency in paying its suppliers has slightly deteriorated over the period, with a notable dip between 2023 and 2024. The decrease could indicate a lengthening of the average time taken to settle accounts payable, which could be due to strategic payment practices, a temporary cash flow constraint, or changes in supplier payment terms. The subsequent small increase in 2025 may reflect a reassessment or improvement in payment timing.
Overall, the payables turnover ratio indicates that La-Z-Boy's payments to suppliers are made roughly 12 times annually, with slight fluctuations year over year. Maintaining or improving this ratio could benefit the company by optimizing cash flow and strengthening supplier relationships, depending on industry standards and company policies.
Peer comparison
Apr 30, 2025