La-Z-Boy Incorporated (LZB)
Financial leverage ratio
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,913,440 | 1,866,260 | 1,932,090 | 1,786,320 | 1,434,890 |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 941,836 | 810,725 | 773,498 | 700,753 |
| Financial leverage ratio | 1.91 | 1.98 | 2.38 | 2.31 | 2.05 |
April 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,913,440K ÷ $1,003,060K
= 1.91
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. The trend analysis of the financial leverage ratio for La-Z-Boy Incorporated shows fluctuations over the past five years.
In April 2020, the financial leverage ratio was 2.05, indicating that the company had a relatively high level of leverage. This decreased to 2.31 in April 2021, signaling a temporary decrease in reliance on debt financing. However, in the following years, there was a significant increase in the financial leverage ratio, with it reaching 2.38 in April 2022 and then 1.98 in April 2023.
The most recent data point, recorded in April 2024, shows a financial leverage ratio of 1.91, indicating a slight decrease in leverage compared to the previous year. Despite the fluctuations, the financial leverage ratio of La-Z-Boy Incorporated remains above 1, indicating that the company relies more on debt financing than equity to support its operations.
Overall, the trend in the financial leverage ratio for La-Z-Boy Incorporated suggests some variability in the company's capital structure over the past five years, with periods of increased and decreased leverage. Investors and stakeholders may want to monitor this metric to assess the company's financial risk and ability to meet its debt obligations.
Peer comparison
Apr 27, 2024