La-Z-Boy Incorporated (LZB)

Short-term

Turnover ratios

La-Z-Boy Incorporated's inventory turnover has been relatively stable over the past few periods, ranging between 4.17 and 5.41. This indicates that the company is efficient in managing its inventory levels and turning over its inventory into sales.

The receivables turnover ratio has shown some fluctuation but generally remains at a healthy level. It ranged from 11.49 to 20.09, suggesting that the company is effective in collecting receivables from customers, albeit with some variability.

On the other hand, the payables turnover ratio has also fluctuated, but overall the company appears to be managing its payables effectively. The ratio ranged from 9.26 to 17.70, indicating that La-Z-Boy is efficiently settling its payables within a reasonable timeframe.

The working capital turnover ratio has shown some variability over the periods analyzed, ranging from 4.69 to 8.81. This ratio reflects how effectively the company is utilizing its working capital to generate sales. Overall, the fluctuation in this ratio could indicate changes in the company's efficiency in generating sales relative to its working capital.

In summary, La-Z-Boy Incorporated seems to be effectively managing its inventory, receivables, payables, and working capital to support its sales activities, although some fluctuations in the ratios suggest areas that may require closer monitoring and management attention.

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Average number of days

Days of inventory on hand (DOH) is a measure of how efficiently La-Z-Boy manages its inventory. Over the periods examined, the trend shows some fluctuations but remains within a relatively consistent range of around 70 to 90 days. This indicates that La-Z-Boy generally maintains its inventory for approximately 2 to 3 months before selling it.

Days of sales outstanding (DSO) measures how long it takes for La-Z-Boy to collect payment after making a sale. The DSO has shown some variability over the periods analyzed, ranging from around 18 to 31 days. A lower DSO is generally preferable as it indicates faster collection of receivables.

The number of days of payables indicates how quickly La-Z-Boy pays its suppliers. This ratio has also exhibited fluctuations but has generally hovered around 20 to 40 days. A higher number of days of payables suggests that the company takes longer to pay its suppliers, potentially improving cash flow.

Overall, the activity ratios for La-Z-Boy suggest that the company has experienced some changes in efficiency in managing its inventory, collecting receivables, and paying its suppliers over the periods examined. Monitoring and analyzing these ratios can provide insights into the company's operational performance and liquidity.

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Long-term

La-Z-Boy Incorporated's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the company's efficiency in generating revenues from its assets.

The fixed asset turnover ratio has been relatively stable over the periods analyzed, ranging from 6.86 to 9.31. This indicates that the company is effectively utilizing its fixed assets to generate sales, with a higher ratio implying better efficiency in generating revenue from its long-term investments in fixed assets such as property, plant, and equipment.

On the other hand, the total asset turnover ratio shows a more fluctuating trend, ranging from 0.91 to 1.34. This ratio measures the company's ability to generate sales from all of its assets, both fixed and current. A higher total asset turnover ratio signifies efficient utilization of all assets to generate revenue.

Overall, La-Z-Boy's performance in terms of asset turnover indicates that the company has been maintaining a good level of efficiency in generating sales from its assets. The stable fixed asset turnover and fluctuating total asset turnover suggest a balanced approach in leveraging both fixed and current assets to drive revenue growth.