La-Z-Boy Incorporated (LZB)
Profitability ratios
Return on sales
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.07% | 43.07% | 42.93% | 41.06% | 38.86% |
| Operating profit margin | 7.37% | 7.37% | 9.00% | 9.00% | 8.77% |
| Pretax margin | 8.10% | 8.00% | 8.76% | 8.70% | 8.72% |
| Net profit margin | 5.99% | 5.99% | 6.41% | 6.41% | 6.37% |
Based on the provided data, we can see the trend in La-Z-Boy Incorporated's profitability ratios over the specified periods.
1. Gross Profit Margin:
- There has been a consistent increase in the gross profit margin from 38.86% in April 2022 to 43.07% in April 2024.
- This indicates that the company has been able to improve its efficiency in controlling the cost of goods sold over the years.
2. Operating Profit Margin:
- The operating profit margin increased slightly from 8.77% in April 2022 to 9.00% in April 2023, but then decreased to 7.37% in April 2024.
- The dip in the operating profit margin in 2024 suggests that the company's operating expenses relative to its revenue may have increased.
3. Pretax Margin:
- The pretax margin fluctuated slightly between 8.72% in April 2022 and 8.10% in April 2024.
- This indicates that the company's ability to generate profits before taxes has been relatively stable over the years.
4. Net Profit Margin:
- The net profit margin followed a similar trend to the pretax margin, declining slightly from 6.37% in April 2022 to 5.99% in April 2024.
- This suggests that the company's profitability in terms of earnings after all expenses and taxes has remained relatively consistent.
Overall, while La-Z-Boy Incorporated has shown improvement in its gross profit margin, there have been fluctuations in its operating profit margin, pretax margin, and net profit margin over the analyzed periods. It would be important for the company to delve deeper into the factors that have impacted these margins to ensure sustained profitability in the future.
Return on investment
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.88% | 7.88% | 11.33% | 11.33% | 10.70% |
| Return on assets (ROA) | 6.41% | 6.41% | 8.07% | 8.07% | 7.76% |
| Return on total capital | 16.57% | 15.03% | 21.91% | 22.45% | 25.46% |
| Return on equity (ROE) | 12.23% | 12.23% | 16.00% | 16.00% | 18.50% |
La-Z-Boy Incorporated's profitability ratios show a mixed performance over the period covered. Operating return on assets (Operating ROA) improved from 10.70% as of April 30, 2022, to 11.33% as of April 29, 2023, before remaining steady at 11.33% as of April 30, 2023, then declining to 7.88% by April 27, 2024, where it remained at the same level by April 30, 2024.
Return on assets (ROA) followed a similar trend, starting at 7.76% on April 30, 2022, increasing to 8.07% by April 29, 2023, remaining stable at 8.07% by April 30, 2023, then decreasing to 6.41% by April 27, 2024, where it maintained the level on April 30, 2024.
Return on total capital showed a more significant decline, dropping from 25.46% on April 30, 2022, to 22.45% on April 29, 2023, further declining to 21.91% by April 30, 2023, and then dropping to 15.03% by April 27, 2024. However, there was a slight improvement to 16.57% by April 30, 2024.
Return on equity (ROE) also experienced a downward trend during the period, starting at 18.50% on April 30, 2022, decreasing to 16.00% by April 29, 2023, and maintaining this level by April 30, 2023. It then declined further to 12.23% by April 27, 2024, where it remained at the same level by the end of the period on April 30, 2024.
Overall, La-Z-Boy Incorporated faced challenges in maintaining its profitability ratios, with a general decline observed in Return on Total Capital and Return on Equity, while Operating Return on Assets and Return on Assets fluctuated but generally remained at lower levels by the end of the period analyzed.