La-Z-Boy Incorporated (LZB)
Profitability ratios
Return on sales
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.07% | 41.06% | 38.86% | 42.68% | 42.34% |
| Operating profit margin | 7.37% | 9.00% | 8.77% | 7.88% | 6.97% |
| Pretax margin | 8.00% | 8.70% | 8.62% | 8.35% | 6.67% |
| Net profit margin | 5.99% | 6.41% | 6.37% | 6.14% | 4.55% |
La-Z-Boy Incorporated's profitability ratios have shown variations over the past five years. The gross profit margin has generally improved, increasing from 38.86% in 2022 to 43.07% in 2024, indicating the company has been able to effectively control its cost of goods sold.
On the other hand, the operating profit margin has fluctuated, with a slight decrease from 9.00% in 2023 to 7.37% in 2024. This suggests that the company's operating expenses have not been as effectively managed in the most recent year.
Similarly, the pretax margin has shown some volatility, ranging from 6.67% in 2020 to 8.70% in 2023. However, in the most recent year of 2024, it decreased slightly to 8.00%. This indicates that the company's pre-tax profitability has been somewhat unstable over the years.
The net profit margin, which reflects the company's bottom-line profitability after all expenses have been deducted, has also exhibited some fluctuations. It increased from 4.55% in 2020 to 6.41% in 2023, but slightly decreased to 5.99% in 2024. This indicates that the company's ability to efficiently manage its costs and expenses to generate profits has been somewhat inconsistent.
Overall, La-Z-Boy Incorporated's profitability ratios demonstrate a mix of positive and negative trends, suggesting the company may benefit from a closer review of its cost structures and operational efficiencies to improve its bottom-line performance.
Return on investment
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.88% | 11.33% | 10.70% | 7.65% | 8.28% |
| Return on assets (ROA) | 6.41% | 8.07% | 7.76% | 5.96% | 5.40% |
| Return on total capital | 15.03% | 22.45% | 25.50% | 17.68% | 16.95% |
| Return on equity (ROE) | 12.23% | 16.00% | 18.50% | 13.76% | 11.06% |
La-Z-Boy Incorporated's profitability ratios show a consistent trend of relatively healthy performance over the past five years. The operating return on assets (Operating ROA) has fluctuated within a narrow range, with the highest value in 2019 and the lowest in 2021. This ratio measures how efficiently the company generates operating income from its assets, with an average of approximately 9.57% over the five-year period.
The Return on Assets (ROA) has also exhibited stability, reflecting the company's ability to generate net income relative to its total assets. The average ROA over the period stands at around 6.72%, peaking in 2023 and hitting a low in 2020.
The Return on Total Capital ratio has shown a decreasing trend in recent years despite remaining at healthy levels. This metric measures the overall return earned by both equity and debt holders, indicating how effectively the company utilizes its capital to generate profits.
Lastly, the Return on Equity (ROE) has gradually increased, reflecting a positive trajectory in terms of generating returns for shareholders. While there are fluctuations from year to year, the average ROE over the period is about 14.31%.
Overall, La-Z-Boy Incorporated has demonstrated relatively stable profitability ratios, indicating a consistent performance in generating returns for both investors and stakeholders.