La-Z-Boy Incorporated (LZB)
Cash conversion cycle
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.45 | 72.82 | 76.81 | 83.04 | 67.48 |
| Days of sales outstanding (DSO) | days | 24.82 | 19.50 | 28.46 | 29.33 | 21.28 |
| Number of days of payables | days | 30.22 | 28.33 | 26.35 | 34.57 | 20.62 |
| Cash conversion cycle | days | 77.05 | 64.00 | 78.91 | 77.79 | 68.14 |
April 27, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 82.45 + 24.82 – 30.22
= 77.05
The cash conversion cycle for La-Z-Boy Incorporated has shown fluctuations over the past five years. In the most recent fiscal year, ending on April 27, 2024, the company's cash conversion cycle increased to 77.05 days from 64.00 days the previous year. This indicates that it took La-Z-Boy longer to convert its investments in inventory and accounts receivable into cash during this period.
Comparing this to the previous years, the cash conversion cycle was also higher than in the fiscal year ending April 30, 2022, but slightly lower than in the fiscal year ending April 24, 2021. However, it was notably higher compared to the fiscal year ending April 25, 2020.
Overall, the trend in the cash conversion cycle for La-Z-Boy Incorporated has been somewhat irregular, with fluctuations observed over the past five years. This metric is essential as it reflects the efficiency of the company in managing its working capital, inventory, and accounts receivable to generate cash, and any significant changes in the cycle should be closely monitored by stakeholders to assess the company's operational and financial performance.
Peer comparison
Apr 27, 2024