La-Z-Boy Incorporated (LZB)
Cash ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 341,098 | 343,374 | 245,589 | 391,213 | 261,553 |
| Short-term investments | US$ in thousands | 6,812 | 6,394 | 17,359 | 20,569 | 21,971 |
| Total current liabilities | US$ in thousands | 437,281 | 475,861 | 675,689 | 611,670 | 350,169 |
| Cash ratio | 0.80 | 0.74 | 0.39 | 0.67 | 0.81 |
April 27, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($341,098K
+ $6,812K)
÷ $437,281K
= 0.80
The cash ratio of La-Z-Boy Incorporated has shown variability over the past five years. In the most recent fiscal year ending on April 27, 2024, the company's cash ratio stood at 0.80, indicating that for every dollar of current liabilities, the company had $0.80 in cash or cash equivalents to cover those short-term obligations. This reflects a healthy liquidity position compared to the previous year when the cash ratio was 0.74.
Looking back at the trend, the cash ratio was significantly lower in the fiscal year ending April 30, 2022, at 0.39, which might have raised concerns about the company's ability to meet its short-term liabilities solely with cash reserves. However, the cash ratio improved in the following year to 0.67, indicating a positive trend in liquidity management. In comparison, in the fiscal year ending April 25, 2020, the cash ratio was at its highest point, reaching 0.81.
Overall, the fluctuations in La-Z-Boy's cash ratio suggest varying levels of liquidity management over the years, with the company showing improvements in recent periods. It is essential for stakeholders to monitor this ratio closely to ensure the company maintains an adequate cash position to meet its short-term obligations effectively.
Peer comparison
Apr 27, 2024