La-Z-Boy (STU:LAZ) Operating Income : €142 Mil (TTM As of Jan. 2024)

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What is La-Z-Boy Operating Income?

La-Z-Boy's Operating Income for the three months ended in Jan. 2024 was €30 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was €142 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. La-Z-Boy's Operating Income for the three months ended in Jan. 2024 was €30 Mil. La-Z-Boy's Revenue for the three months ended in Jan. 2024 was €459 Mil. Therefore, La-Z-Boy's Operating Margin % for the quarter that ended in Jan. 2024 was 6.51%.

Good Sign:

La-Z-Boy Inc operating margin is expanding. Margin expansion is usually a good sign.

La-Z-Boy's 5-Year average Growth Rate for Operating Margin % was 2.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. La-Z-Boy's annualized ROC % for the quarter that ended in Jan. 2024 was 8.45%. La-Z-Boy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 15.92%.

La-Z-Boy Operating Income Historical Data

The historical data trend for La-Z-Boy's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

La-Z-Boy Operating Income Chart

La-Z-Boy Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Operating Income

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115.41

133.97

114.31

191.46

192.83

La-Z-Boy Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial															39.76	49.32	31.21	31.83	29.89

La-Z-Boy Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €142 Mil.

La-Z-Boy (STU:LAZ) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

La-Z-Boy's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	119.564 * ( 1 - 20.19% )	/	( (1132.593	+	1126.044)	/ 2 )
=	95.4240284	/	1129.3185
=	8.45 %

where

	Invested Capital		(Q: Oct. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1780.384	-	335.629	-	( 312.162	-	max(0, 408.928	-	796.442	+	312.162	))
=	1132.593

	Invested Capital		(Q: Jan. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1760.992	-	332.629	-	( 302.319	-	max(0, 403.867	-	780.659	+	302.319	))
=	1126.044

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

La-Z-Boy's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	132.36	/	( ( (684.6 + max(148.651, 0))	+	(683.736 + max(145.711, 0)) )	/	2 )
=	132.36	/	( ( 833.251	+	829.447 )	/	2 )
=	132.36	/	831.349
=	15.92 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(127.271	+	254.251	+	102.758)	-	(335.629	+	0	+	0)
=	148.651

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(109.594	+	254.133	+	114.613)	-	(332.629	+	0	+	0)
=	145.711

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

La-Z-Boy's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	29.891	/	459.373
	=	6.51 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

La-Z-Boy Operating Income Related Terms

Thank you for viewing the detailed overview of La-Z-Boy's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

La-Z-Boy (STU:LAZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » La-Z-Boy Inc (STU:LAZ) » Definitions » Operating Income

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Traded in Other Exchanges

LZB:USA

Address

One La-Z-Boy Drive, Monroe, MI, USA, 48162-5138

Website

https://www.la-z-boy.com

La-Z-Boy Inc is a U.S.-based company that manufactures, distributes, and retails upholstery furniture products. It is a producer of reclining chairs and distributors of residential furniture in the U.S. The company chiefly operates in the United States but also has secondary operations in Canada and other countries. The company's reportable segments include the Wholesale segment, which manufactures and imports upholstered furniture; and Retail, which sells upholstered and case goods furniture to the end consumer. The majority of the company's revenue is derived from its Wholesale segment. Some of the core brands of the firm include England, Kincaid, American Drew, and Hammary.