La-Z-Boy Incorporated (LZB)
Return on total capital
| Apr 30, 2025 | Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 166,071 | 150,796 | 206,325 | 211,439 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,020,620 | 1,003,060 | 1,003,060 | 941,836 | 941,836 |
| Return on total capital | 0.00% | 16.56% | 15.03% | 21.91% | 22.45% |
April 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,020,620K)
= 0.00%
The provided data indicates that La-Z-Boy Incorporated's return on total capital (ROTC) experienced fluctuations over the specified periods. As of April 29, 2023, the ROTC was recorded at 22.45%, suggesting a strong level of profitability relative to the total capital invested in the company. Slightly lower, the figure for April 30, 2023, was 21.91%, which indicates marginal deterioration but still reflects a robust return on capital.
Moving into the subsequent fiscal year, the ROTC declined notably to 15.03% on April 27, 2024, representing a significant decrease in profitability margins related to total capital. This downward trend continued into April 30, 2024, where the ROTC further decreased to 16.56%. Although this figure demonstrates a modest improvement from the earlier point in April 2024, it remains substantially below the levels observed in 2023.
By April 30, 2025, the data records the return at 0.00%, implying that the company's operations on that date did not generate a return on total capital or that the data point was potentially an anomaly or a result of specific accounting adjustments or extraordinary circumstances. This drastic change signifies a possible deterioration in operational effectiveness or external factors impacting overall profitability.
Overall, the trend in La-Z-Boy's ROTC indicates a decline from strong, double-digit returns in 2023 to negligible or no returns in 2025. Such a trajectory prompts considerations of underlying causes such as increased costs, competitive pressures, market declines, or strategic shifts impacting the company's ability to generate returns on its total capital.
Peer comparison
Apr 30, 2025