La-Z-Boy Incorporated (LZB)
Debt-to-capital ratio
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 1,003,060 | 941,836 | 941,836 | 810,725 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
April 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,003,060K)
= 0.00
The debt-to-capital ratio for La-Z-Boy Incorporated has consistently been 0.00 over the past five years, based on the data provided. This indicates that the company has not utilized any debt to finance its operations relative to its total capital during this period.
A debt-to-capital ratio of 0.00 suggests that the company is effectively operating with zero debt in its capital structure. This may imply that La-Z-Boy is relying more on equity financing or internal funds to support its operations and growth initiatives, rather than taking on debt obligations.
Having a low or zero debt-to-capital ratio may be considered advantageous as it signifies lower financial risk and potential interest expense burdens. However, it's important to note that a zero debt level could also mean missed opportunities for leveraging debt for potential business expansions or tax benefits.
Overall, the consistent 0.00 debt-to-capital ratio for La-Z-Boy Incorporated indicates a conservative approach to financial leverage and a strong financial position with minimal reliance on external debt financing.
Peer comparison
Apr 30, 2024