La-Z-Boy Incorporated (LZB)
Working capital turnover
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 22, 2022 | Oct 23, 2021 | Jul 24, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,047,027 | 2,054,779 | 2,127,096 | 2,226,993 | 2,349,433 | 2,472,712 | 2,471,562 | 2,436,119 | 2,356,811 | 2,191,715 | 2,090,338 | 1,973,569 | 1,734,244 | 1,582,055 | 1,587,715 | 1,575,807 | 1,703,982 | 1,790,492 | 1,782,218 | 1,774,339 |
| Total current assets | US$ in thousands | 836,808 | 850,391 | 841,016 | 829,480 | 854,600 | 848,994 | 857,313 | 919,826 | 951,776 | 962,304 | 965,168 | 937,255 | 926,160 | 888,197 | 796,402 | 703,952 | 626,326 | 603,298 | 561,589 | 531,303 |
| Total current liabilities | US$ in thousands | 437,281 | 439,942 | 431,814 | 437,908 | 475,861 | 509,384 | 550,722 | 639,062 | 675,689 | 713,470 | 680,540 | 652,337 | 611,670 | 550,847 | 490,312 | 424,546 | 350,169 | 328,522 | 317,606 | 295,850 |
| Working capital turnover | 5.12 | 5.01 | 5.20 | 5.69 | 6.20 | 7.28 | 8.06 | 8.68 | 8.54 | 8.81 | 7.34 | 6.93 | 5.51 | 4.69 | 5.19 | 5.64 | 6.17 | 6.52 | 7.30 | 7.54 |
April 27, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,047,027K ÷ ($836,808K – $437,281K)
= 5.12
The working capital turnover ratio for La-Z-Boy Incorporated has shown fluctuations over the last few years. It measures how efficiently the company is utilizing its working capital to generate revenue.
From October 2019 to April 2020, the working capital turnover ratio increased steadily from 7.30 to 8.68, indicating an improvement in the company's ability to generate revenue using its working capital. However, there was a slight dip in January 2021 to 4.69 before rebounding in April 2021.
The ratio peaked at 8.81 in January 2022, suggesting that the company efficiently utilized its working capital to generate sales revenue. Subsequently, there was a gradual decline in the ratio till July 2023, where it reached a low of 5.69.
From July 2023 to January 2024, there was a slight increase in the ratio, showing a positive trend in the utilization of working capital. However, this increase was followed by a decrease to 5.01 in January 2024.
Overall, La-Z-Boy's working capital turnover ratio has shown variability over the periods analyzed. It is essential for the company to maintain consistency or improve this ratio to ensure effective management of its working capital and generate sustainable revenue growth in the future.
Peer comparison
Apr 27, 2024