La-Z-Boy Incorporated (LZB)

The analysis of La-Z-Boy Incorporated's solvency ratios, based on the provided data, indicates a consistent profile of minimal to-zero leverage during the observed periods. Specifically, the Debt-to-Assets ratio remains at 0.00 across all reporting dates, implying that the company's total liabilities are effectively nonexistent relative to its total assets, suggesting either negligible debt or a significant reliance on equity financing.

Similarly, the Debt-to-Capital ratio and Debt-to-Equity ratio are both reported at 0.00 throughout the observed timeline. These figures reinforce the interpretation that the company has not engaged in leveraging its capital structure through debt, or such debt is insignificant enough to be considered negligible. The absence of debt in these ratios indicates a potentially conservative approach to leverage or a position of strong equity capitalization.

The Financial Leverage Ratio, while not zero, shows a relatively low and stable range, decreasing slightly from approximately 2.30 in the earlier periods to around 1.88–1.96 in later dates. This ratio typically measures the degree of financial leverage; a ratio close to 2 suggests that total assets are roughly twice the shareholders' equity, reflecting a modest leverage position. The gradual decrease over time may imply a slight reduction in leverage, potentially indicating an internal shift toward even less indebtedness or increased equity relative to assets.

Collectively, these ratios portray La-Z-Boy as a company with minimal or no debt exposure and a low to moderate level of financial leverage. The data points to a conservative financial stance regarding leverage, with a stable or improving solvency profile. Such a position can enhance financial stability and reduce vulnerability to interest rate fluctuations or credit market disruptions; however, it may also limit growth opportunities that debt financing could facilitate.

In summary, throughout the analyzed periods, La-Z-Boy Incorporated exhibits a consistent pattern of negligible leverage ratios and a modest, slightly decreasing financial leverage ratio, underscoring a strong solvency position characterized by minimal debt reliance and prudent capital management.

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Coverage ratios

The interest coverage ratios for La-Z-Boy Incorporated over the observed period demonstrate a generally strong capacity to meet interest obligations, although there are notable fluctuations. The ratios, which measure the company's earnings before interest and taxes (EBIT) relative to interest expenses, consistently remain well above the typical safety threshold of 3, indicating a robust cushion to cover interest expenses.

From July 2022 through October 2023, the ratios exhibit an upward trend, reflecting increasing earnings relative to interest payments. Specifically, the ratio increased from approximately 316 in late July 2022 to a peak of around 415 at the end of October 2022, and then maintained a high level around 355 to 415 into early 2023. This suggests that La-Z-Boy was experiencing strong earnings capable of comfortably covering interest costs during this period.

In the second half of 2023 and into early 2024, the interest coverage ratios remain relatively stable, fluctuating slightly around the 320 to 370 range. Notably, by April 2024, the ratio increased to approximately 377, indicating continued strong earnings relative to interest expenses.

However, a decline is observed in the most recent period, with the ratio decreasing to approximately 211.98 in April 2025. Despite this decline, the ratio remains above 3, which is generally considered adequate, though it indicates that the company's earnings have decreased relative to interest obligations, warranting attention to potential earnings pressure.

Overall, La-Z-Boy Incorporated's interest coverage ratio over this period reflects a comfortable ability to service interest expenses, supported by generally strong earnings. The observed decline toward the most recent period suggests some erosion in earnings or increases in interest obligations, but the ratio still remains at a level indicative of a manageable debt position.