La-Z-Boy Incorporated (LZB)
Profitability ratios
Return on sales
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 43.92% | 43.76% | 43.52% | 43.12% | 43.01% | 43.04% | 43.08% | 43.10% | 43.13% | 43.92% | 44.66% | 44.17% | 43.71% | 42.31% | 40.97% | 40.68% | 39.96% | 39.66% | 39.08% | 38.70% |
| Operating profit margin | 7.42% | 7.53% | 8.12% | 7.91% | 7.90% | 7.20% | 6.54% | 6.70% | 6.86% | 7.70% | 8.50% | 8.52% | 8.55% | 8.70% | 8.84% | 9.14% | 9.42% | 9.82% | 9.10% | 8.68% |
| Pretax margin | 6.98% | 8.09% | 8.65% | 8.52% | 8.50% | 7.87% | 7.25% | 7.42% | 7.57% | 7.80% | 8.03% | 7.95% | 7.90% | 8.47% | 8.99% | 9.26% | 9.50% | 9.81% | 9.01% | 8.51% |
| Net profit margin | 4.72% | 5.92% | 6.35% | 6.34% | 6.45% | 5.99% | 5.52% | 5.51% | 5.51% | 5.72% | 5.93% | 5.88% | 5.83% | 6.21% | 6.57% | 6.77% | 6.96% | 7.21% | 6.61% | 6.29% |
The analysis of La-Z-Boy Incorporated's profitability ratios over the observed period indicates a trend of gradual improvement in gross profit margin, steadily increasing from approximately 38.7% in July 2022 to around 43.9% by April 2025. This consistent upward trajectory suggests enhanced efficiency in cost management related to production and direct costs, leading to a higher percentage of revenue remaining after the deduction of cost of goods sold. The modest fluctuations within this period reflect a relatively stable core profitability, with notable increases towards the latter part of the period.
Operating profit margin has shown a more fluctuating pattern, with values starting at around 8.7% in July 2022 and experiencing a downward trend, reaching a low of approximately 6.7% in early 2024. Notably, there is a slight recovery observed from mid-2024, with the margin increasing back toward approximately 8% by October 2024. This indicates potential improvements in operating efficiency or cost control measures implemented during the latter part of the period after a decline. The overall variability suggests sensitivity to factors such as operational cost fluctuations, pricing strategies, or product mix changes.
Pre-tax margin ratios follow a similar pattern to operating margins, with initial values around 8.5% in mid-2022 gradually declining to approximately 7% by early 2024, then demonstrating slight recovery towards 8.5% before declining again towards the end of the period. This pattern indicates that profitability before taxation has been somewhat volatile, possibly impacted by changes in operating expenses, interest costs, or other non-operational factors.
Net profit margins reflect the ultimate profitability after all expenses, including taxes. The net margin remained within a relatively narrow range, approximately 6.3% to 7.2%, until early 2024, after which it experienced a slight decline to about 4.7% in early 2025. The margins display a pattern of stability with minor fluctuations initially, followed by a downward trend, which could suggest increased tax burdens, rising expenses, or margin compression affecting net profitability over time.
In summary, La-Z-Boy's gross profit margin demonstrates steady improvement, signifying enhanced gross profitability. In contrast, operating, pre-tax, and net profit margins exhibit more volatility, influenced by operational efficiency, cost control, and broader expense dynamics. Despite some fluctuations, the profitability ratios indicate a cautiously optimistic trend towards improving gross margins, though overall net profitability has faced pressure in recent periods, highlighting potential challenges in managing operational and non-operational costs efficiently.
Return on investment
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.14% | 8.05% | 8.95% | 8.67% | 8.70% | 7.78% | 6.90% | 7.00% | 7.25% | 8.34% | 9.59% | 10.04% | 10.39% | 10.80% | 11.34% | 11.87% | 12.33% | 13.24% | 11.68% | 11.00% |
| Return on assets (ROA) | 5.18% | 6.33% | 6.99% | 6.96% | 7.10% | 6.47% | 5.82% | 5.76% | 5.82% | 6.20% | 6.70% | 6.93% | 7.08% | 7.71% | 8.43% | 8.79% | 9.11% | 9.72% | 8.49% | 7.97% |
| Return on total capital | 11.32% | 16.63% | 17.94% | 17.67% | 17.24% | 15.60% | 14.31% | 14.52% | 14.94% | 15.79% | 18.12% | 18.71% | 19.82% | 21.65% | 23.37% | 24.40% | 26.40% | 28.08% | 26.64% | 25.01% |
| Return on equity (ROE) | 9.75% | 12.14% | 13.35% | 13.35% | 13.55% | 12.34% | 11.42% | 11.30% | 11.34% | 12.08% | 12.98% | 13.42% | 14.04% | 15.28% | 17.17% | 17.92% | 19.34% | 20.64% | 19.50% | 18.30% |
The profitability ratios of La-Z-Boy Incorporated from July 2022 through April 2025 exhibit notable trends and fluctuations, reflecting varying operational and financial performance over this period.
Operating Return on Assets (Operating ROA):
The Operating ROA demonstrates a decline over time, beginning at 11.68% at the end of July 2022 and gradually decreasing to approximately 6.90% by the end of January 2024. After hitting a low of 6.90%, it shows signs of recovery, increasing to roughly 8.70% by April 2024 and further to approximately 8.95% by October 2024 before stabilizing around 8.14% in April 2025. This pattern indicates an initial downward trend in the efficiency of asset utilization in generating operating profits, followed by a partial rebound in late 2024 and early 2025.
Return on Assets (ROA):
ROA reflects a similar downward trend, declining from approximately 8.49% in July 2022 to around 5.82% in October 2023. It then exhibits modest recovery, rising to approximately 7.10% by April 2024, before settling at about 5.18% in April 2025. The sustained decline suggests decreasing overall profitability relative to total assets, with short-term periods of improvement.
Return on Total Capital (ROTC):
ROTC shows a declining trajectory from over 26% in late 2022 to approximately 14.31% in January 2024. Subsequently, it experiences fluctuations, with a brief increase to 17.24% in April 2024 and an upward trend reaching about 17.94% in October 2024. However, by April 2025, it declines significantly to approximately 11.32%. This variability indicates periods of efficiency in generating returns on total capital, but an overall downward drift over the period.
Return on Equity (ROE):
ROE similarly declines from around 19.50% in July 2022 to about 11.34% at the end of October 2023, signaling decreased profitability margins attributable to shareholder equity. In the subsequent months, some recovery is observed, with ROE increasing to approximately 13.55% in April 2024, then stabilizing around 13.35% through October 2024. The trend declines again in early 2025, with ROE falling to approximately 9.75% by April 2025. The overall pattern reflects a reduction in profitability relative to shareholders’ equity over the period, punctuated by interim recoveries.
Summary:
Overall, La-Z-Boy’s profitability ratios over the analyzed period indicate a general downward trend from mid-2022 to late 2023, with partial recoveries in certain metrics during 2024 before another decline into early 2025. Factors contributing to these trends could include market cyclicality, changes in operational efficiency, or variations in cost structures. The data suggest a period of declining profitability margins across key ratios, with some signs of stabilization or modest improvement in late 2024, but without a sustained upward trend through early 2025.