La-Z-Boy Incorporated (LZB)
Working capital turnover
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,047,030 | 2,047,030 | 2,349,430 | 2,349,430 | 2,356,810 |
| Total current assets | US$ in thousands | 836,808 | 836,808 | 854,600 | 854,600 | 951,776 |
| Total current liabilities | US$ in thousands | 437,281 | 437,281 | 475,861 | 475,861 | 675,689 |
| Working capital turnover | 5.12 | 5.12 | 6.20 | 6.20 | 8.54 |
April 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,047,030K ÷ ($836,808K – $437,281K)
= 5.12
La-Z-Boy Incorporated's working capital turnover has gradually decreased over the years, indicating a decline in the efficiency of its working capital management. In April 2022, the working capital turnover was 8.54, which means that the company generated $8.54 of revenue for every dollar of working capital invested. However, by April 30, 2024, this ratio had dropped to 5.12, suggesting that the firm was only generating $5.12 of revenue for each dollar of working capital.
This trend implies that La-Z-Boy may be facing challenges in optimizing its working capital utilization or that its sales growth is not keeping pace with its working capital investment. Further analysis of the company's operating cycle, inventory turnover, and accounts receivable turnover could provide more insights into the factors driving this decline in working capital turnover and help identify areas for improvement in efficiency.
Peer comparison
Apr 30, 2024