La-Z-Boy Incorporated (LZB)
Return on equity (ROE)
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 122,626 | 122,626 | 150,664 | 150,664 | 150,017 |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 1,003,060 | 941,836 | 941,836 | 810,725 |
| ROE | 12.23% | 12.23% | 16.00% | 16.00% | 18.50% |
April 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $122,626K ÷ $1,003,060K
= 12.23%
La-Z-Boy Incorporated's Return on Equity (ROE) has shown a decreasing trend over the period analyzed. In April 2022, the ROE was 18.50%, indicating that the company generated $18.50 in net income for every $100 of shareholders' equity. However, by April 2024, the ROE had decreased to 12.23%.
A declining ROE can suggest that the company's profitability or efficiency in generating returns from its equity has weakened over time. It is important to investigate the factors contributing to this decline, such as changes in net income, equity levels, or operational inefficiencies.
Investors and analysts may need to further examine La-Z-Boy's financial performance, strategic decisions, and operational effectiveness to assess the reasons behind the decreasing ROE and its implications for the company's overall financial health and shareholder value.
Peer comparison
Apr 30, 2024