La-Z-Boy Incorporated (LZB)
Working capital turnover
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,109,207 | 2,091,871 | 2,123,629 | 2,103,008 | 2,107,882 | 2,065,782 | 2,023,682 | 2,004,927 | 1,986,172 | 2,036,024 | 2,085,876 | 2,176,948 | 2,268,020 | 2,318,065 | 2,368,110 | 2,399,478 | 2,430,846 | 2,504,080 | 2,464,321 | 2,431,803 |
| Total current assets | US$ in thousands | 805,688 | 840,912 | 819,161 | 834,375 | 836,808 | 836,808 | 850,391 | 850,391 | 841,016 | 841,016 | 829,480 | 829,480 | 854,600 | 854,600 | 848,994 | 848,994 | 857,313 | 857,313 | 919,826 | 919,826 |
| Total current liabilities | US$ in thousands | 420,791 | 455,509 | 434,890 | 439,942 | 437,281 | 437,281 | 439,942 | 439,942 | 431,814 | 431,814 | 437,908 | 437,908 | 475,861 | 475,861 | 509,384 | 509,384 | 550,722 | 550,722 | 639,062 | 639,062 |
| Working capital turnover | 5.48 | 5.43 | 5.53 | 5.33 | 5.28 | 5.17 | 4.93 | 4.88 | 4.85 | 4.98 | 5.33 | 5.56 | 5.99 | 6.12 | 6.97 | 7.07 | 7.93 | 8.17 | 8.78 | 8.66 |
April 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,109,207K ÷ ($805,688K – $420,791K)
= 5.48
The analysis of La-Z-Boy Incorporated’s working capital turnover ratio over the period from July 2022 to April 2025 reveals a general declining trend followed by a stabilization phase. Initially, in July 2022, the ratio was relatively high at approximately 8.66 and 8.78, indicating efficient utilization of working capital relative to sales during that period. However, the ratio exhibited a consistent decline over subsequent quarters, dropping to around 4.85 by October 2023.
This downward trend suggests a reduction in the efficiency with which La-Z-Boy utilizes its working capital to generate sales or revenues. The decline likely reflects increased working capital levels relative to sales, possibly due to inventory buildup, extended receivables, or decreased sales efficiency.
From October 2023 onward, the ratio shows signs of stabilization, fluctuating modestly around the 5.0 to 5.5 range. Notably, between October 2023 and April 2025, the ratio increased slightly from 4.85 to 5.53, indicating a minor improvement in efficiency or adjustments in working capital management strategies.
Overall, the trend signifies that La-Z-Boy’s working capital turnover has decreased over the observed period, pointing toward a period of reduced efficiency in turning working capital into sales, but recent data suggests a stabilization phase that could potentially indicate the beginning of improved working capital management practices or a change in operational factors.
Peer comparison
Apr 30, 2025