La-Z-Boy Incorporated (LZB)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,529 | 169,794 | 181,161 | 176,584 | 172,969 | 156,462 | 139,977 | 142,069 | 144,034 | 152,258 | 172,719 | 178,371 | 186,685 | 203,907 | 211,717 | 221,089 | 230,892 | 245,596 | 222,546 | 208,871 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,020,620 | 1,021,270 | 1,009,920 | 999,209 | 1,003,060 | 1,003,060 | 978,220 | 978,220 | 964,283 | 964,283 | 953,262 | 953,262 | 941,836 | 941,836 | 906,098 | 906,098 | 874,658 | 874,658 | 835,262 | 835,262 |
| 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% |
April 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $115,529K ÷ ($—K + $1,020,620K)
= 11.32%
The analysis of La-Z-Boy Incorporated's return on total capital (ROTC) over the period from late July 2022 through April 2025 reveals notable fluctuations that suggest evolving operational efficiency and capital utilization.
Initially, the ROTC was relatively high, with percentages around 25% to 28% between July and October 2022. Specifically, in July 2022, the return stood at approximately 25.01%, climbing to 28.08% by October 2022. This indicates strong profitability relative to total capital during that period, likely reflecting favorable market conditions, effective cost management, or successful strategic initiatives.
Subsequently, the ROTC experienced a gradual decline, with figures decreasing to approximately 24.4%–23.37% in early 2023. Notably, by April 2023, the ROTC fell below 20%, reaching 19.82%. The downward trend continued throughout 2023, with the percentage declining further to around 15.79% in October 2023 and reaching 14.31% by January 2024. This consistent decrease suggests a reduction in the company's ability to generate profit from its total capital base, potentially due to increased costs, changing demand dynamics, or operational challenges.
In the subsequent period, slight recoveries are observed. From January to April 2024, the ROTC increased from approximately 14.31% to 17.24%, indicating some improvement in capital efficiency or profitability measures. This upward trend persisted through July and October 2024, with the ROTC reaching approximately 17.67% and 17.94%, respectively.
However, the trajectory changes again in early 2025. The ROTC declines to 16.63% in January before experiencing a significant drop to 11.32% by April 2025, marking the lowest point within this period. This sharp decrease could reflect adverse operational or market conditions impacting the company's capacity to generate returns on its total capital.
Overall, the data demonstrates a pattern of initial strong performance, a declining trend through mid to late 2023, modest recovery, followed by renewed deterioration into early 2025. The fluctuations suggest that La-Z-Boy's capital efficiency has been subject to various internal and external factors influencing profitability and investment returns over this timeframe.
Peer comparison
Apr 30, 2025