La-Z-Boy Incorporated (LZB)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 82.45 | 87.63 | 81.45 | 77.06 | 73.43 | 74.59 | 83.37 | 81.23 | 76.81 | 86.95 | 84.01 | 84.11 | 83.04 | 86.78 | 76.56 | 72.70 | 67.48 | 68.96 | 71.14 | 68.56 |
| Days of sales outstanding (DSO) | days | 24.82 | 21.21 | 23.06 | 18.17 | 19.50 | 20.31 | 23.63 | 23.38 | 28.46 | 27.15 | 30.38 | 26.19 | 29.33 | 29.82 | 29.50 | 22.55 | 21.28 | 31.34 | 31.76 | 27.64 |
| Number of days of payables | days | 30.22 | 27.48 | 29.76 | 28.02 | 28.56 | 21.35 | 25.93 | 30.31 | 26.35 | 32.30 | 35.27 | 37.57 | 34.57 | 39.43 | 36.22 | 24.95 | 20.62 | 23.63 | 24.92 | 21.82 |
| Cash conversion cycle | days | 77.05 | 81.35 | 74.76 | 67.21 | 64.37 | 73.55 | 81.07 | 74.29 | 78.91 | 81.79 | 79.12 | 72.73 | 77.79 | 77.17 | 69.83 | 70.30 | 68.14 | 76.67 | 77.98 | 74.38 |
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 of La-Z-Boy Incorporated has exhibited fluctuations over the past few periods. The trend shows that the company's cash conversion cycle has ranged between 64.37 days and 81.79 days, indicating variability in the efficiency of its working capital management.
Analyzing the data, the company's cash conversion cycle was at its lowest point of 64.37 days in April 2023 and at its highest point of 81.79 days in January 2022. This suggests that the company was able to convert its investments in inventory and receivables into cash more quickly in April 2023 compared to January 2022.
Overall, there seems to be a general upward trend in the cash conversion cycle of La-Z-Boy Incorporated, which indicates that the company might be taking longer to convert its investments in inventory and receivables into cash over time. It is essential for the company to closely monitor and manage its working capital to improve efficiency in this area and optimize its cash flow.
Peer comparison
Apr 27, 2024