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