La-Z-Boy Incorporated (LZB)
Interest coverage
| Apr 30, 2024 | Apr 27, 2024 | Apr 30, 2023 | Apr 29, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 166,207 | 150,796 | 206,325 | 211,439 | 206,386 |
| Interest expense | US$ in thousands | 455 | 455 | 536 | 536 | 895 |
| Interest coverage | 365.29 | 331.42 | 384.93 | 394.48 | 230.60 |
April 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $166,207K ÷ $455K
= 365.29
Based on the provided data, La-Z-Boy Incorporated's interest coverage has shown a positive trend over the years. As of April 30, 2022, the interest coverage ratio was 230.60, indicating the company's ability to cover its interest expenses 230.60 times over with its earnings before interest and taxes (EBIT).
The interest coverage ratio improved significantly to 394.48 as of April 29, 2023, and remained strong at 384.93 by April 30, 2023, indicating the company's enhanced ability to meet its interest obligations comfortably.
Although there was a slight decrease in the interest coverage ratio to 331.42 by April 27, 2024, it still reflects a healthy financial position, with the company generating earnings sufficient to cover its interest charges more than 300 times over.
By April 30, 2024, the interest coverage ratio increased to 365.29, showcasing La-Z-Boy Incorporated's continued strong performance in managing its interest expenses effectively. Overall, the trend indicates the company's ability to honor its interest payments without difficulty and suggests a sound financial position.
Peer comparison
Apr 30, 2024