La-Z-Boy Incorporated (LZB)

Payables 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
Payables US$ in thousands 96,486 86,819 98,088 97,954 107,460 86,882 106,614 123,832 104,025 117,239 119,971 118,120 94,152 96,388 89,260 61,917 55,511 68,045 71,852 62,935
Payables turnover 12.08 13.28 12.27 13.03 12.78 17.10 14.07 12.04 13.85 11.30 10.35 9.72 10.56 9.26 10.08 14.63 17.70 15.45 14.65 16.72

April 27, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,165,357K ÷ $96,486K
= 12.08

The payables turnover ratio for La-Z-Boy Incorporated has shown some fluctuation over the past few years. The ratio measures how efficiently the company is managing its accounts payable by comparing the cost of goods sold to average payables outstanding.

In analyzing the trend, we observe that the payables turnover ratio has ranged from a low of 9.26 to a high of 17.70 over the past 20 quarters. The ratio peaked in July 2022 at 17.70, indicating that the company was able to convert its accounts payable into purchases approximately 17.70 times during that quarter.

On average, the payables turnover ratio appears to be around 13, suggesting that on average, La-Z-Boy is able to clear its accounts payable roughly 13 times a year. This indicates that the company is efficient in managing its accounts payable, although it has shown some variability over the period analyzed.

Furthermore, a decreasing trend in the payables turnover ratio may suggest that the company is taking longer to pay its suppliers, potentially indicating cash flow issues or strained supplier relationships. Conversely, an increasing trend could suggest that the company is paying its suppliers more rapidly, which may have implications for liquidity and working capital management.

Overall, while the payables turnover ratio provides insight into how effectively La-Z-Boy is managing its accounts payable, it is important to consider other financial metrics and contextual factors to gain a more complete understanding of the company's financial health and operational efficiency.


Peer comparison

Apr 27, 2024

Company name
Symbol
Payables turnover
La-Z-Boy Incorporated
LZB
12.08
Leggett & Platt Incorporated
LEG
8.83
Tempur Sealy International Inc
TPX
8.98