La-Z-Boy Incorporated (LZB)

Return on sales

The profitability ratios of La-Z-Boy Incorporated reveal notable trends over the periods assessed. The gross profit margin demonstrates a consistent upward trajectory, increasing from approximately 41.06% and 42.93% on April 29 and 30, 2023, respectively, to 43.07% by April 27 and 30, 2024, and further reaching 43.92% on April 30, 2025. This suggests an improvement in gross profitability, likely reflecting enhanced cost management or favorable product pricing strategies.

The operating profit margin exhibits a slight decline, dropping from 9.00% in the fiscal year ending April 2023 to approximately 7.37% in April 2024, before experiencing a marginal increase to 7.42% in April 2025. These fluctuations indicate some pressure on operating profitability within this period, possibly due to increased operating expenses or changing sales mix, though the overall trend remains relatively stabilized.

Pre-tax margins follow a similar pattern, decreasing from around 8.70% and 8.76% in April 2023 to approximately 8.00% and 8.10% in April 2024, then decreasing further to 6.98% in April 2025. The decline suggests a reduction in pre-tax profitability, which may be associated with increased expenses or other factors affecting profitability before tax.

Net profit margins show a consistent downward trend, declining from 6.41% in April 2023 to 5.99% in April 2024 and further decreasing to 4.72% in April 2025. This indicates that after accounting for all expenses, including taxes, the company's profitability per dollar of sales has diminished over the period. The narrowing of net profit margins could be attributable to rising costs, increased competitiveness, or other external factors impacting net income.

Overall, while La-Z-Boy’s gross profit margin has improved, indicating better control over cost of goods sold or pricing power, the decline in operating, pre-tax, and net profit margins suggests increasing operational or non-operational costs that have impacted overall profitability margins over time.

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Return on investment

The analysis of La-Z-Boy Incorporated’s profitability ratios demonstrates notable trends over the specified periods. The Operating Return on Assets (Operating ROA) remained steady at 11.33% on both April 29, 2023, and April 30, 2023, but experienced a decline to 7.88% by April 27, 2024, and April 30, 2024. A slight recovery was observed in 2025, with the ratio increasing to 8.14%. This pattern indicates a reduction in the efficiency of the company's core operations in generating operating income relative to its assets over the period analyzed.

Similarly, the Return on Assets (ROA) exhibited a downward trend, decreasing from 8.07% on April 29, 2023, to 6.41% by April 27, 2024 and April 30, 2024. A further decline is noted by April 30, 2025, reaching approximately 5.18%. This persistent decrease suggests a diminishing ability of the company’s total assets to generate net income, which could reflect increased expenses, lower margins, or challenges in asset productivity.

The Return on Total Capital showed a declining trajectory as well. Initially, it stood at approximately 22.45% on April 29, 2023, decreasing slightly to 21.91% on April 30, 2023. The significant drop was observed by April 27, 2024, falling to 15.03%, and then a modest increase to 16.56% by April 30, 2024. Notably, the ratio drops to 0.00% by April 30, 2025, signaling potential shifts in capital allocation, profitability, or reporting nuances during that period.

The Return on Equity (ROE) also showed a decreasing pattern, beginning at 16.00% on April 29, 2023, and remaining steady through April 30, 2023. It then declined to 12.23% by April 27, 2024 and April 30, 2024, and further decreased to 9.75% by April 30, 2025. This downward trend in ROE indicates that the company’s profitability relative to shareholders’ equity has diminished over time, which could be attributable to lower net income, increased equity base, or a combination of factors impacting shareholder returns.

Overall, the ratios suggest a period of weakening profitability for La-Z-Boy Incorporated, with reductions across operating efficiency and net income generation relative to assets, capital, and shareholders’ equity over the recent fiscal years. The data indicates potential challenges in maintaining prior profitability levels, warranting further investigation into underlying operational or market factors influencing these ratios.