La-Z-Z-Boy Financial Ratios
Financial Ratio Analysis: The Case of La-Z-Boy
La-Z-Boy (LZB) Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company's segments include the Upholstery segment, the Casegoods segment and the Retail segment.
Yahoo Finance classifies LZB as being part of Furniture industries1. The Furniture industry segment is very broad that includes beds, office furniture, lamps, sofas, etc. In this paper, we will compare LZB key stats to Industries Average and its peer group. The Fiscal Year (FY) for LZB ends on April 30th.
La-Z-Boy vs. Industry Average by Morningstar.com: The above Key Stats indicates LZB share’s price to earnings (P/E), books (P/B) and sales (P/S) are currently traded at …show more content…
LZB’s quick ratio is 1.52 and five year average of 1.7 compared to .38 of industry average4. Both of these ratio reflects LZB is operating very efficiently and has sufficient capacity to meet its obligations using liquid assets that are in cash or other resources that can be converted to cash.
Moreover, it is critical to analyze a company’s operating cash flow against earnings numbers to measure whether its performance is sustainable. LZB’s change in operating cash flow of -42.71% year over year is about the same as its change in earnings at the end of quarter 1 of FY18. Also, this variation in operating cash flow is very comparable among its peer group. This suggests that the company did not use reserves to manage earnings and that, all else being equal, the earnings number is sustainable4. Finally, La-Z-Boy and Ethan Allen are the Apple and Samsung of the furniture industry. This report will be incomplete without the analysis of these two companies side by side. Below tables compares key financial ratios of both of this competitor. La-Z-Boy and Ethan Allen financial statements, Morning Star2 and Google finance5 are used to figure below
La-Z-Boy (LZB) Incorporated manufactures, markets, imports, exports, distributes and retails upholstery furniture products. The Company's segments include the Upholstery segment, the Casegoods segment and the Retail segment.
Yahoo Finance classifies LZB as being part of Furniture industries1. The Furniture industry segment is very broad that includes beds, office furniture, lamps, sofas, etc. In this paper, we will compare LZB key stats to Industries Average and its peer group. The Fiscal Year (FY) for LZB ends on April 30th.
La-Z-Boy vs. Industry Average by Morningstar.com: The above Key Stats indicates LZB share’s price to earnings (P/E), books (P/B) and sales (P/S) are currently traded at …show more content…
LZB’s quick ratio is 1.52 and five year average of 1.7 compared to .38 of industry average4. Both of these ratio reflects LZB is operating very efficiently and has sufficient capacity to meet its obligations using liquid assets that are in cash or other resources that can be converted to cash.
Moreover, it is critical to analyze a company’s operating cash flow against earnings numbers to measure whether its performance is sustainable. LZB’s change in operating cash flow of -42.71% year over year is about the same as its change in earnings at the end of quarter 1 of FY18. Also, this variation in operating cash flow is very comparable among its peer group. This suggests that the company did not use reserves to manage earnings and that, all else being equal, the earnings number is sustainable4. Finally, La-Z-Boy and Ethan Allen are the Apple and Samsung of the furniture industry. This report will be incomplete without the analysis of these two companies side by side. Below tables compares key financial ratios of both of this competitor. La-Z-Boy and Ethan Allen financial statements, Morning Star2 and Google finance5 are used to figure below