La-Z-Boy Incorporated (LZB)
Return on equity (ROE)
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 99,556 | 122,626 | 122,626 | 150,664 | 150,664 |
| Total stockholders’ equity | US$ in thousands | 1,020,620 | 1,003,060 | 1,003,060 | 941,836 | 941,836 |
| ROE | 9.75% | 12.23% | 12.23% | 16.00% | 16.00% |
April 30, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $99,556K ÷ $1,020,620K
= 9.75%
The analysis of La-Z-Boy Incorporated's return on equity (ROE) over the specified period indicates a declining trend. On April 29 and April 30, 2023, the ROE stood at 16.00%, reflecting a relatively strong profitability in generating earnings relative to shareholders' equity. By April 27 and April 30, 2024, the ROE decreased to 12.23%, signifying a deterioration in profitability metrics or an increase in shareholders’ equity that outpaced earnings growth. This downward movement continued into the fiscal year ending April 30, 2025, with the ROE further declining to 9.75%.
The sustained decline in ROE suggests that La-Z-Boy's efficiency in generating profits from shareholders' equity has diminished over this period. Several potential factors could contribute to this trend, including increased equity base without proportional earnings growth, declining net income, or changes in operational efficiency. Overall, the decreasing ROE underscores a shift toward lower return generation for shareholders, warranting further investigation into the drivers of profitability and capital structure adjustments during this timeframe.
Peer comparison
Apr 30, 2025