La-Z-Boy Incorporated (LZB)

Quick ratio

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
Cash US$ in thousands 341,098 329,324 329,632 336,434 343,374 280,763 204,626 238,170 245,589 236,712 293,341 332,960 391,213 390,324 350,949 334,204 261,553 166,272 117,569 111,622
Short-term investments US$ in thousands 6,812 7,837 7,785 8,751 6,394 12,315 11,953 16,054 17,359 16,226 17,883 20,016 20,569 20,229 18,436 11,816 21,971 22,433 23,273 29,456
Receivables US$ in thousands 139,213 119,383 134,394 110,857 125,536 137,593 160,035 156,027 183,747 163,018 173,998 141,597 139,341 129,256 128,324 97,374 99,351 153,721 155,086 134,379
Total current liabilities US$ in thousands 437,281 439,942 431,814 437,908 475,861 509,384 550,722 639,062 675,689 713,470 680,540 652,337 611,670 550,847 490,312 424,546 350,169 328,522 317,606 295,850
Quick ratio 1.11 1.04 1.09 1.04 1.00 0.85 0.68 0.64 0.66 0.58 0.71 0.76 0.90 0.98 1.02 1.04 1.09 1.04 0.93 0.93

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 fluctuations over the historical period provided. The quick ratio measures the company's ability to cover its current liabilities using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has sufficient liquid assets to meet its short-term obligations.

Based on the data provided, we can see that the quick ratio has generally been above 1 in recent periods, indicating that La-Z-Boy has had a strong ability to cover its short-term liabilities with its quick assets. The ratio peaked at 1.11 in the most recent period, April 27, 2024, which suggests an improved liquidity position compared to previous periods.

However, there are fluctuations in the quick ratio over the historical period, with some quarters showing ratios below 1, indicating potential liquidity constraints. For instance, the quick ratio dropped to 0.58 in the quarter ending January 22, 2022. This may be a sign that the company had a lower level of quick assets relative to its current liabilities in that particular period.

Overall, a trend of improving quick ratio over time is positive as it suggests that La-Z-Boy has been strengthening its liquidity position. Monitoring this ratio along with other liquidity and financial metrics will be important for assessing the company's short-term financial health and ability to meet its obligations.


Peer comparison

Apr 27, 2024

Company name
Symbol
Quick ratio
La-Z-Boy Incorporated
LZB
1.11
Leggett & Platt Incorporated
LEG
0.84
Tempur Sealy International Inc
TPX
0.58