La-Z-Boy Incorporated (LZB)
Receivables turnover
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,047,030 | 2,349,430 | 2,356,810 | 1,734,240 | 1,703,980 |
| Receivables | US$ in thousands | 139,213 | 125,536 | 183,747 | 139,341 | 99,351 |
| Receivables turnover | 14.70 | 18.72 | 12.83 | 12.45 | 17.15 |
April 27, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,047,030K ÷ $139,213K
= 14.70
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher receivables turnover ratio indicates that the company is able to efficiently collect payments from its customers, while a lower ratio may suggest potential issues with collecting receivables.
Analyzing the receivables turnover ratios of La-Z-Boy Incorporated over the past five years, we observe fluctuations in the efficiency of the company's receivables collection process.
In the financial year ending April 27, 2024, the receivables turnover ratio was 14.70, indicating that La-Z-Boy was able to collect payments from customers approximately 14.70 times during the year. This represents a decrease from the previous year's ratio of 18.72.
Comparing the current ratio to that of previous years, it is higher compared to the ratios of April 30, 2022, and April 24, 2021, suggesting an improvement in the efficiency of collecting receivables. However, the ratio for April 27, 2024, is lower than that of April 25, 2020, indicating a slight decline in efficiency from two years ago.
Overall, the trend in La-Z-Boy's receivables turnover ratios shows some variability, with fluctuations from year to year. It is essential for the company to closely monitor and manage its receivables collection process to ensure continued efficiency in collecting payments and maintaining positive cash flows.
Peer comparison
Apr 27, 2024