La-Z-Boy Incorporated (LZB)
Payables turnover
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,182,789 | 1,176,432 | 1,199,472 | 1,196,245 | 1,201,208 | 1,176,586 | 1,151,964 | 1,140,735 | 1,129,506 | 1,141,887 | 1,154,268 | 1,215,487 | 1,276,706 | 1,337,343 | 1,397,980 | 1,423,469 | 1,459,388 | 1,510,879 | 1,501,239 | 1,490,816 |
| Payables | US$ in thousands | 95,984 | 106,594 | 107,545 | 94,165 | 96,486 | 96,486 | 86,819 | 86,819 | 98,088 | 98,088 | 97,954 | 97,954 | 107,460 | 107,460 | 86,882 | 86,882 | 106,614 | 106,614 | 123,832 | 123,832 |
| Payables turnover | 12.32 | 11.04 | 11.15 | 12.70 | 12.45 | 12.19 | 13.27 | 13.14 | 11.52 | 11.64 | 11.78 | 12.41 | 11.88 | 12.45 | 16.09 | 16.38 | 13.69 | 14.17 | 12.12 | 12.04 |
April 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,182,789K ÷ $95,984K
= 12.32
The payables turnover ratio for La-Z-Boy Incorporated has exhibited notable fluctuations over the analyzed period, reflecting shifts in the company's payment practices and management of accounts payable. Initially, the ratio ranged from approximately 12.04 times in late July 2022 to a peak of 16.38 times in late January 2023, indicating an improvement in the company's ability to settle its payables more frequently within the fiscal year. This upward trend suggests that the company was extending credit periods or optimizing its payment schedule during this period.
Subsequently, a decline is observed from the peak of 16.38 times in January 2023 to around 11.88 times in April 2023, representing a reduced frequency in paying off liabilities. This could imply either a strategic change in payment policies, a temporary increase in payables, or broader operational factors affecting cash flows. The fluctuations continue through subsequent quarters, with ratios generally remaining within the range of approximately 11.15 to 13.27 times.
Specifically, the ratio shows some recovery in late January 2024 to around 13.14 times but then dips again to 12.19 times in April 2024. The ratio stabilizes somewhat, with values around 12.70 in mid-2024, before decreasing to approximately 11.15 in October 2024, and later marginally increasing to 12.32 in early 2025. This pattern demonstrates a cyclical or responsive behavior in the company's payment cycle, perhaps influenced by operational needs, supplier negotiations, or changes in working capital management strategies.
Overall, the payables turnover ratio indicates that La-Z-Boy's payment frequency has been variable but generally consistent within a certain range. These changes could reflect strategic adjustments aimed at balancing supplier relationships with cash flow considerations, or responses to internal financial circumstances. The relatively stable ranges, despite fluctuations, suggest a disciplined approach to managing accounts payable with periodic adjustments aligned to operational priorities.
Peer comparison
Apr 30, 2025