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