La-Z-Boy Incorporated (LZB)
Financial leverage ratio
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,913,440 | 1,913,440 | 1,866,260 | 1,866,260 | 1,932,090 |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 1,003,060 | 941,836 | 941,836 | 810,725 |
| Financial leverage ratio | 1.91 | 1.91 | 1.98 | 1.98 | 2.38 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,913,440K ÷ $1,003,060K
= 1.91
The financial leverage ratio of La-Z-Boy Incorporated has exhibited a gradual decline over the past few years, indicating a positive trend in the company's financial structure. The ratio decreased from 2.38 in April 30, 2022, to 1.91 in April 30, 2024. This suggests that the company has been reducing its reliance on debt to finance its operations, which could potentially lead to lower financial risk and increased financial stability. A lower financial leverage ratio typically indicates a stronger equity base relative to debt, which may enhance the company's ability to weather economic fluctuations and market challenges. Overall, the decreasing trend in La-Z-Boy's financial leverage ratio reflects a prudent approach to capital structure management.
Peer comparison
Apr 30, 2024