La-Z-Boy Incorporated (LZB)
Working capital turnover
| 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 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,403,601 |
| Total current assets | US$ in thousands | 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 | 951,776 |
| Total current liabilities | US$ in thousands | 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 | 675,689 |
| Working capital turnover | 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 | 8.71 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,091,871K ÷ ($840,912K – $455,509K)
= 5.43
The working capital turnover ratio for La-Z-Boy Incorporated has been fluctuating over the periods provided. The ratio started at a high of 8.71 as of April 30, 2022, indicating that the company was able to generate $8.71 in net sales for every $1 of working capital invested.
Subsequently, the ratio experienced some declines and reached its lowest point at 4.85 as of October 31, 2023, before showing a slight increase to 5.43 as of January 31, 2025.
Overall, the decreasing trend in the working capital turnover ratio suggests that the efficiency of La-Z-Boy's working capital management may have declined over time, as the company may not be utilizing its working capital as effectively to generate sales. It is important for the company to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and maximize profitability.
Peer comparison
Jan 31, 2025