La-Z-Boy Incorporated (LZB)
Cash conversion cycle
| Apr 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 78.78 | 89.58 | 88.01 | 82.93 | 79.99 | 81.66 | 87.71 | 88.58 | 86.76 | 85.82 | 85.20 | 80.91 | 78.98 | 75.40 | 79.25 | 77.84 | 85.72 | 82.80 | 80.68 | 81.25 |
| Days of sales outstanding (DSO) | days | 24.15 | 22.27 | 22.09 | 27.29 | 30.26 | 24.60 | 29.33 | 21.73 | 31.17 | 24.09 | 19.40 | 18.59 | 20.20 | 19.77 | 21.21 | 20.93 | 24.03 | 23.33 | 39.16 | 23.42 |
| Number of days of payables | days | 29.62 | 33.07 | 32.73 | 28.73 | 29.32 | 29.93 | 27.51 | 27.78 | 31.70 | 31.35 | 30.97 | 29.41 | 30.72 | 29.33 | 22.68 | 22.28 | 26.66 | 25.76 | 30.11 | 30.32 |
| Cash conversion cycle | days | 73.31 | 78.77 | 77.37 | 81.49 | 80.93 | 76.33 | 89.54 | 82.53 | 86.23 | 78.56 | 73.62 | 70.08 | 68.46 | 65.84 | 77.78 | 76.49 | 83.08 | 80.37 | 89.73 | 74.35 |
April 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 78.78 + 24.15 – 29.62
= 73.31
The analysis of La-Z-Boy Incorporated’s cash conversion cycle (CCC) over the observed periods indicates notable fluctuations within the range of approximately 65.84 days to 89.54 days.
Initially, in late July 2022, the CCC was recorded at approximately 74.35 days, which decreased to 65.84 days by late April 2023, suggesting an improvement in the company's efficiency in managing its working capital during this period. This decline indicates a shorter duration for converting investments into cash, likely driven by improved inventory turnover or receivables collection, combined with optimized payables.
However, subsequent periods reveal a reversal and upward trend in the CCC. By late October 2023, the cycle had increased to around 86.23 days, reflecting a potential slowdown in cash collection or inventory turnover, or extended payment durations to suppliers. This upward movement suggests deteriorations in operational efficiencies or strategic shifts impacting the cash flow cycle.
In the most recent data from early 2024 to mid-2025, the CCC demonstrates some fluctuation but generally remains elevated relative to the earlier period, with values around 78.77 days to 73.31 days. Notably, in April 2025, the CCC declined to approximately 73.31 days, indicating a modest improvement and potential stabilization in the company’s working capital management strategies.
Overall, the longitudinal data reflects a cycle characterized by periods of efficiency improvements interspersed with phases of elongation. The increases in the cycle duration could point to challenges in receivables collection, inventory management, or changes in payment policies. Conversely, the reductions suggest successful initiatives aimed at optimizing working capital. The cyclical nature underscores the importance of ongoing strategies to maintain a balanced and efficient cash conversion cycle, which directly impacts liquidity and operational performance.
Peer comparison
Apr 30, 2025