La-Z-Boy Incorporated (LZB)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 328,449 | 314,589 | 303,062 | 342,270 | 341,098 | 341,098 | 329,324 | 329,324 | 329,632 | 329,632 | 336,434 | 336,434 | 343,374 | 343,374 | 280,763 | 280,763 | 204,626 | 204,626 | 241,437 | 238,170 |
| Short-term investments | US$ in thousands | — | — | 2,415 | 4,509 | 6,812 | 6,812 | 7,837 | 7,837 | 7,785 | 7,785 | 8,751 | 8,751 | 6,394 | 6,394 | 12,315 | 12,315 | 11,953 | 11,953 | 16,054 | 16,054 |
| Total current liabilities | US$ in thousands | 420,791 | 455,509 | 434,890 | 439,942 | 437,281 | 437,281 | 439,942 | 439,942 | 431,814 | 431,814 | 437,908 | 437,908 | 475,861 | 475,861 | 509,384 | 509,384 | 550,722 | 550,722 | 639,062 | 639,062 |
| Cash ratio | 0.78 | 0.69 | 0.70 | 0.79 | 0.80 | 0.80 | 0.77 | 0.77 | 0.78 | 0.78 | 0.79 | 0.79 | 0.74 | 0.74 | 0.58 | 0.58 | 0.39 | 0.39 | 0.40 | 0.40 |
April 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($328,449K
+ $—K)
÷ $420,791K
= 0.78
The analysis of La-Z-Boy Incorporated’s cash ratio over the referenced period indicates a generally stable liquidity position in terms of immediate short-term asset liquidity. The cash ratio, which measures a company's ability to pay off its short-term liabilities with its most liquid assets (cash and cash equivalents), exhibits incremental growth from approximately 0.40 in mid-2022 to a peak of around 0.80 in mid-2024.
During the fiscal year ending October 2022, the cash ratio remained relatively steady at approximately 0.39 to 0.40, reflecting a conservative liquidity stance. Starting in early 2023, the ratio increased notably, reaching approximately 0.58 by January. This upward trend persisted through the following months, with the ratio reaching around 0.74 in April 2023, indicating an improvement in liquidity and better coverage of short-term liabilities with cash assets.
The ratio continued to increase into mid-2023, attaining approximately 0.79 by mid-year, suggesting that La-Z-Boy improved its liquidity position, potentially due to favorable cash management strategies, reductions in short-term liabilities, or increases in cash holdings. In subsequent quarters, the ratio remained relatively stable at about 0.78 to 0.79 through October 2023, reinforcing a consistent liquidity level at high levels relative to short-term obligations.
Toward the later periods, at the start of 2024, the cash ratio slightly decreased to approximately 0.77 but remained close to its peak levels observed earlier. The ratio peaked again at approximately 0.80 in April 2024, indicating maximum liquidity in respect to short-term obligations during this time frame. The ratio then showed a slight decline in the subsequent months, dropping to around 0.69 by January 2025 but still remaining above the initial levels observed in mid-2022.
Overall, the cash ratio trend demonstrates that La-Z-Boy has maintained a prudent liquidity policy with periods of strengthening liquidity, especially from 2023 onwards, to safeguard against short-term financial obligations. The fluctuations, while relatively minor, suggest management's responsiveness to changing liquidity needs over the period, with confidence in maintaining a healthy cash buffer.
Peer comparison
Apr 30, 2025