La-Z-Boy Incorporated (LZB)
Return on total capital
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 166,207 | 150,796 | 206,325 | 211,439 | 206,386 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 1,003,060 | 941,836 | 941,836 | 810,725 |
| Return on total capital | 16.57% | 15.03% | 21.91% | 22.45% | 25.46% |
April 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $166,207K ÷ ($—K + $1,003,060K)
= 16.57%
La-Z-Boy Incorporated's return on total capital has exhibited a declining trend over the specified periods, starting at 25.46% in April 2022 and decreasing to 16.57% by April 2024. This downward trajectory suggests that the company's ability to generate profits from its total capital has weakened over this timeframe. A decreasing return on total capital may indicate inefficiencies in the company's capital utilization or declining profitability relative to the amount of capital employed in its operations. It is essential for La-Z-Boy to closely monitor and address the factors contributing to this decline to improve its overall financial performance and ensure sustainable growth in the future.
Peer comparison
Apr 30, 2024