La-Z-Boy Incorporated (LZB)
Working capital turnover
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,109,210 | 2,047,030 | 2,047,030 | 2,349,430 | 2,349,430 |
| Total current assets | US$ in thousands | 805,688 | 836,808 | 836,808 | 854,600 | 854,600 |
| Total current liabilities | US$ in thousands | 420,791 | 437,281 | 437,281 | 475,861 | 475,861 |
| Working capital turnover | 5.48 | 5.12 | 5.12 | 6.20 | 6.20 |
April 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,109,210K ÷ ($805,688K – $420,791K)
= 5.48
The working capital turnover ratio for La-Z-Boy Incorporated exhibits notable fluctuations over the specified period. As of April 29 and April 30, 2023, the ratio stood at 6.20, indicating a relatively efficient utilization of working capital to generate sales during that time frame. This level persisted unchanged through the same dates in 2023, suggesting stability in operational efficiency.
By April 27 and April 30, 2024, the ratio declined to 5.12, signifying a decrease in the efficiency of working capital management relative to sales. This reduction may reflect either increased working capital levels without a proportional increase in sales or a decline in sales volume, thereby affecting the ratio.
In the subsequent period ending April 30, 2025, the ratio slightly increased to 5.48. This uptick indicates a modest improvement in working capital utilization compared to the previous year, although it remains below the levels observed in 2023. The current ratio suggests a more efficient deployment of working capital than in 2024 but does not fully revert to the higher ratios observed earlier.
Overall, the trend in La-Z-Boy's working capital turnover ratio demonstrates a decrease from the 2023 levels, with a partial recovery in 2025. The fluctuations highlight changes in either sales performance, working capital levels, or both, influencing the company's operational efficiency over the analyzed period.
Peer comparison
Apr 30, 2025