La-Z-Boy Incorporated (LZB)
Quick ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 139,213 | 125,536 | 183,747 | 139,341 | 99,351 |
| Total current liabilities | US$ in thousands | 437,281 | 475,861 | 675,689 | 611,670 | 350,169 |
| Quick ratio | 1.11 | 1.00 | 0.66 | 0.90 | 1.09 |
April 27, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($341,098K
+ $6,812K
+ $139,213K)
÷ $437,281K
= 1.11
The quick ratio of La-Z-Boy Incorporated has shown fluctuating trends over the past five years. In the latest fiscal year, as of April 27, 2024, the quick ratio improved to 1.11, indicating that the company had $1.11 of liquid assets available to cover each dollar of current liabilities without relying on inventory. This suggests the company's ability to meet its short-term obligations has strengthened compared to the previous year.
In the prior fiscal year, as of April 29, 2023, the quick ratio was 1.00, indicating that the company had just enough liquid assets to cover its current liabilities. This suggests a relatively stable liquidity position.
However, in the year ended April 30, 2022, the quick ratio dropped to 0.66, signaling that the company had inadequate liquid assets to cover its current liabilities, raising concerns about its short-term solvency and ability to meet its obligations without relying on inventory.
In the fiscal year ended April 24, 2021, the quick ratio improved to 0.90, showing a slight recovery in the company's liquidity position compared to the previous year.
Furthermore, in the fiscal year ended April 25, 2020, the quick ratio was 1.09, indicating a relatively strong liquidity position, with $1.09 of liquid assets available to cover each dollar of current liabilities.
Overall, while there have been fluctuations in La-Z-Boy Incorporated's quick ratio over the past five years, the latest ratio of 1.11 suggests an improved ability to cover short-term obligations with liquid assets. It is essential for investors and stakeholders to monitor these trends to assess the company's liquidity position and financial health.
Peer comparison
Apr 27, 2024