La-Z-Boy Incorporated (LZB)
Interest coverage
| Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 27, 2024 | Jan 31, 2024 | Jan 27, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,529 | 169,794 | 181,161 | 176,584 | 172,969 | 156,462 | 139,977 | 142,069 | 144,034 | 152,258 | 172,719 | 178,371 | 186,685 | 203,907 | 211,717 | 221,089 | 230,892 | 245,596 | 222,546 | 208,871 |
| Interest expense (ttm) | US$ in thousands | 545 | 537 | 561 | 568 | 464 | 439 | 414 | 430 | 446 | 467 | 488 | 502 | 516 | 513 | 510 | 533 | 556 | 619 | 660 | 661 |
| Interest coverage | 211.98 | 316.19 | 322.93 | 310.89 | 372.78 | 356.41 | 338.11 | 330.39 | 322.95 | 326.03 | 353.93 | 355.32 | 361.79 | 397.48 | 415.13 | 414.80 | 415.27 | 396.76 | 337.19 | 315.99 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $115,529K ÷ $545K
= 211.98
The interest coverage ratios for La-Z-Boy Incorporated over the specified periods demonstrate a generally strong capacity to meet interest obligations, albeit with some fluctuations. Beginning with ratios exceeding 300 in the earlier periods—specifically, 315.99 in July 2022 and reaching as high as approximately 415.27 in October 2022—these figures indicate that the company's operating earnings significantly exceeded its interest expenses, reflecting a robust financial position during this time frame.
Throughout the subsequent periods, the ratios continued to stay well above the generally accepted threshold of 3, suggesting continued comfort in covering interest payments. For instance, the ratios remained above 350 during much of 2023, with a value of 355.32 in July 2023 and maintaining above 320 into October 2023, evidencing persistent earnings strength relative to interest obligations.
However, a noticeable decline is observed in the ratio commencing in early 2024, with data indicating a downward trend to 330.39 in January 2024 and further decreasing to 211.98 in April 2025. The sharp reduction in April 2025 indicates a significant decline in earnings before interest and taxes (EBIT) relative to interest expenses, potentially signaling increased financial stress or decreased profitability.
Overall, while La-Z-Boy Incorporated exhibited very high interest coverage ratios throughout most of the analyzed period, suggesting a strong ability to service interest payments, the recent decreasing trend warrants ongoing monitoring. The substantial drop in 2025 raises the possibility of approaching levels that could challenge the company's capacity to comfortably meet interest obligations without impacting operational flexibility or requiring refinancing strategies.
Peer comparison
Apr 30, 2025