La-Z-Boy Incorporated (LZB)
Financial leverage ratio
| Apr 27, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 22, 2022 | Oct 23, 2021 | Jul 24, 2021 | Apr 24, 2021 | Jan 23, 2021 | Oct 24, 2020 | Jul 25, 2020 | Apr 25, 2020 | Jan 25, 2020 | Oct 26, 2019 | Jul 27, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,913,440 | 1,918,290 | 1,880,020 | 1,847,580 | 1,866,260 | 1,846,360 | 1,857,540 | 1,918,980 | 1,932,090 | 1,929,560 | 1,852,090 | 1,809,510 | 1,786,320 | 1,740,170 | 1,650,340 | 1,503,750 | 1,434,890 | 1,442,630 | 1,392,330 | 1,362,150 |
| Total stockholders’ equity | US$ in thousands | 1,003,060 | 978,220 | 964,283 | 953,262 | 941,836 | 906,098 | 874,658 | 835,262 | 810,725 | 775,387 | 777,302 | 755,531 | 773,498 | 779,426 | 746,776 | 707,574 | 700,753 | 713,897 | 695,199 | 683,265 |
| Financial leverage ratio | 1.91 | 1.96 | 1.95 | 1.94 | 1.98 | 2.04 | 2.12 | 2.30 | 2.38 | 2.49 | 2.38 | 2.40 | 2.31 | 2.23 | 2.21 | 2.13 | 2.05 | 2.02 | 2.00 | 1.99 |
April 27, 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 been fluctuating over the past several quarters. The ratio indicates the proportion of the company's debt to its equity financing. A higher financial leverage ratio suggests that a company relies more on debt to finance its operations, which can magnify returns but also increase the risk.
In the recent periods, La-Z-Boy's financial leverage ratio has been trending upwards, reaching a peak of 2.49 in the most current quarter, compared to a low of 1.91 around a year ago. This increase in the ratio signifies a higher level of debt relative to equity in the company's capital structure.
An increasing trend in the financial leverage ratio can indicate that La-Z-Boy is taking on more debt to fund its growth or operations. While this can potentially boost profitability, it also exposes the company to higher financial risk, especially in periods of economic uncertainty or interest rate fluctuations.
It would be important for investors and stakeholders to monitor how La-Z-Boy manages its debt levels and whether the increased leverage is being used effectively to generate sustainable returns. Additionally, careful consideration should be given to the company's ability to service its debt obligations and maintain financial stability over the long term.
Peer comparison
Apr 27, 2024