La-Z-Boy Incorporated (LZB)
Working capital 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 |
| Total current assets | US$ in thousands | 836,808 | 854,600 | 951,776 | 926,160 | 626,326 |
| Total current liabilities | US$ in thousands | 437,281 | 475,861 | 675,689 | 611,670 | 350,169 |
| Working capital turnover | 5.12 | 6.20 | 8.54 | 5.51 | 6.17 |
April 27, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,047,030K ÷ ($836,808K – $437,281K)
= 5.12
The working capital turnover ratio for La-Z-Boy Incorporated has fluctuated over the past five years. The ratio indicates how efficiently the company is using its working capital to generate revenue. A higher ratio generally indicates that the company is effectively managing its working capital.
In 2022, the working capital turnover ratio was the highest at 8.54, suggesting that the company was highly efficient in utilizing its working capital to generate sales. However, in 2023 and 2020, the ratio was 6.20 and 6.17 respectively, which are also relatively high and indicate good working capital management during those years.
In 2021, the ratio decreased to 5.51, indicating a slight dip in efficiency compared to the previous year. In the most recent year, 2024, the ratio further declined to 5.12, the lowest in the five-year period, suggesting a potential decrease in the company's ability to generate revenue with its current level of working capital.
Overall, the trend in the working capital turnover ratio for La-Z-Boy Incorporated shows some variability, with some years demonstrating higher efficiency in utilizing working capital than others. Evaluation of the contributing factors behind these fluctuations would provide deeper insights into the company's financial performance and working capital management strategies.
Peer comparison
Apr 27, 2024