La-Z-Boy Incorporated (LZB)
Return on total capital
| 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 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 169,794 | 181,161 | 176,584 | 172,969 | 156,462 | 139,977 | 142,069 | 144,034 | 160,349 | 180,810 | 185,512 | 193,826 | 201,636 | 209,446 | 219,249 | 229,052 | 245,954 | 222,904 | 209,748 | 212,355 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 810,725 |
| Return on total capital | 16.63% | 17.94% | 17.67% | 17.24% | 15.60% | 14.31% | 14.52% | 14.94% | 16.63% | 18.97% | 19.46% | 20.58% | 21.41% | 23.12% | 24.20% | 26.19% | 28.12% | 26.69% | 25.11% | 26.19% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $169,794K ÷ ($—K + $1,021,270K)
= 16.63%
La-Z-Boy Incorporated's return on total capital has shown fluctuations over the analyzed period, ranging from a high of 28.12% on October 29, 2022, to a low of 14.31% on January 31, 2024. The trend indicates a general decline in return on total capital from 26.19% in April 30, 2022, to 16.63% in January 31, 2025.
The return on total capital measures the company's efficiency in generating profits from the total capital employed, including equity and debt. A higher return indicates better utilization of capital, whereas a lower return may signify inefficiency or underperformance. The decline in La-Z-Boy's return on total capital suggests potential challenges in effectively utilizing its capital resources to generate profits during the period under review.
It would be important for stakeholders to further analyze the factors contributing to the fluctuations in return on total capital to determine the underlying reasons for the decline and develop strategies to improve capital efficiency and profitability in the future.
Peer comparison
Jan 31, 2025