La-Z-Boy Incorporated (LZB)
Interest coverage
| Apr 27, 2024 | Apr 29, 2023 | Apr 30, 2022 | Apr 24, 2021 | Apr 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 150,796 | 211,439 | 206,756 | 136,736 | 118,762 |
| Interest expense | US$ in thousands | 455 | 536 | 895 | 1,390 | 1,291 |
| Interest coverage | 331.42 | 394.48 | 231.01 | 98.37 | 91.99 |
April 27, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $150,796K ÷ $455K
= 331.42
La-Z-Boy Incorporated's interest coverage ratio has exhibited a generally positive trend over the past five years, indicating the company's ability to comfortably meet its interest payment obligations. The interest coverage ratio has significantly improved from 91.99 in 2020 to 394.48 in 2023, demonstrating a strong increase in the company's ability to cover its interest expense with operating income. This high level of interest coverage suggests that La-Z-Boy has ample earnings to service its debt without placing strain on its financial position. The latest interest coverage ratio of 331.42 as of April 27, 2024, continues to reflect a robust financial position for the company in terms of meeting its interest obligations. Overall, the consistent improvement in the interest coverage ratio signifies La-Z-Boy's strong financial performance and ability to manage its debt effectively.
Peer comparison
Apr 27, 2024