La-Z-Boy Incorporated (LZB)
Operating return on assets (Operating ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 156,418 | 150,796 | 150,796 | 211,439 | 211,439 |
| Total assets | US$ in thousands | 1,922,160 | 1,913,440 | 1,913,440 | 1,866,260 | 1,866,260 |
| Operating ROA | 8.14% | 7.88% | 7.88% | 11.33% | 11.33% |
April 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $156,418K ÷ $1,922,160K
= 8.14%
The analysis of La-Z-Boy Incorporated's operating return on assets (operating ROA) over the specified periods reveals notable fluctuations. As of April 29 and April 30, 2023, the operating ROA was consistent at 11.33%, indicating a stable level of operating efficiency and profitability relative to its total assets during that period. However, by the following year, the operating ROA declined significantly, measuring 7.88% on both April 27 and April 30, 2024, representing a decrease of approximately 3.45 percentage points from the 2023 baseline. This decline suggests a reduction in the company’s ability to generate operating income from its assets, potentially attributable to increased operating expenses, decreased sales, or a combination of both.
Despite this decline, there was a modest improvement noted by April 30, 2025, with the operating ROA increasing slightly to 8.14%. This upward movement may indicate some recovery or stabilization in operational performance, but the ratio remains considerably below the 2023 levels. Overall, the pattern reflects a period of diminished efficiency in utilizing assets to generate operating income, followed by a slight recuperation, which warrants further examination of underlying operational factors and external influences influencing these trends.
Peer comparison
Apr 30, 2025