La-Z-Boy Incorporated (LZB)
Cash conversion cycle
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.45 | 82.45 | 75.21 | 72.82 | 76.81 |
| Days of sales outstanding (DSO) | days | — | 24.82 | — | 19.50 | — |
| Number of days of payables | days | — | 30.22 | — | 28.33 | — |
| Cash conversion cycle | days | 82.45 | 77.05 | 75.21 | 64.00 | 76.81 |
April 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.45 + — – —
= 82.45
The cash conversion cycle of La-Z-Boy Incorporated has shown fluctuations over the years based on the provided data:
- As of April 30, 2022, the cash conversion cycle was 76.81 days.
- It improved to 64.00 days by April 29, 2023, indicating a more efficient conversion of inventory into cash during that period.
- However, by April 30, 2023, the cash conversion cycle increased to 75.21 days, suggesting a slight slowdown in the cash conversion process.
- The trend continued with a further increase to 77.05 days by April 27, 2024, possibly indicating challenges in managing working capital effectively.
- By April 30, 2024, the cash conversion cycle reached its highest level at 82.45 days, signifying a longer time taken to convert inventory into cash.
Overall, the fluctuations in La-Z-Boy Incorporated's cash conversion cycle highlight the importance of closely monitoring and managing the company's working capital efficiency to ensure optimal cash flow and liquidity in its operations.
Peer comparison
Apr 30, 2024