La-Z-Boy Incorporated (LZB)

La-Z-Boy Incorporated has consistently maintained a debt-free status as indicated by the debt-to-assets, debt-to-capital, and debt-to-equity ratios all being 0.00 across the five years presented. This signifies that the company has been financing its operations without relying on debt as a source of funding.

However, the financial leverage ratio has shown some fluctuation over the years, ranging from 1.91 to 2.38. A financial leverage ratio above 1 indicates that the company has some level of financial leverage, but it is important to note that this is not a measure of debt specifically. The increasing trend in the financial leverage ratio over the years suggests that La-Z-Boy has been relying more on equity financing as opposed to debt financing to support its operations.

Overall, the solvency ratios indicate that La-Z-Boy Incorporated has maintained a strong financial position with minimal reliance on debt for its capital structure, demonstrating financial stability and sustainability. However, the increasing financial leverage ratio warrants further monitoring to ensure the company's continued ability to support its operations effectively.

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Coverage ratios

La-Z-Boy Incorporated's interest coverage ratio has displayed significant fluctuations over the past five years. The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In April 2024, the company's interest coverage ratio stood at an impressive 331.42, indicating that La-Z-Boy had substantial earnings to cover its interest obligations. This sharp increase from the previous year's ratio of 394.48 suggests that the company experienced a substantial boost in profitability relative to its interest expenses.

Looking back further, in April 2023, the interest coverage ratio was even higher at 394.48, reflecting a similar positive trend of robust profitability relative to interest payments. However, the ratio dipped in April 2022 to 231.01, indicating a decrease in earnings relative to interest expenses compared to the previous year.

Further back in April 2021 and April 2020, La-Z-Boy's interest coverage ratios were 98.37 and 91.99, respectively. These lower ratios suggest that the company had a relatively lower ability to cover its interest expenses with its earnings during those years.

Overall, the fluctuations in La-Z-Boy's interest coverage ratio over the past five years may reflect changes in the company's profitability levels and its ability to generate earnings relative to its interest obligations. Investors and stakeholders would likely monitor these ratios closely to assess the company's financial health and ability to service its debt obligations.