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 $33 Mil. La-Z-Boy's Revenue for the
three
months ended in Jan. 2024 was $500 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.
The historical rank and industry rank for La-Z-Boy's Operating Margin % or its related term are showing as below:
LZB'
s Operating Margin % Range Over the Past 10 Years
Min: 6.58 Med: 8.2 Max: 9
Current: 7.53
LZB's Operating Margin % is ranked better than 60% of 420
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 5.365
vs LZB: 7.53
La-Z-Boy's 5-Year Average Operating Margin % Growth Rate was 2.60% per year.
La-Z-Boy's Operating Income for the
three
months ended in Jan. 2024 was $33 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $155 Mil.
La-Z-Boy Operating Margin % Historical Data
The historical data trend for La-Z-Boy's Operating Margin % 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 Annual Data
Trend
Apr14
Apr15
Apr16
Apr17
Apr18
Apr19
Apr20
Apr21
Apr22
Apr23
Operating Margin %
7.43
8.55
7.88
8.77
9.00
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 Margin %
7.48
9.63
7.17
6.57
6.51
Competitive Comparison
For the Furnishings, Fixtures & Appliances subindustry, La-Z-Boy's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
La-Z-Boy Operating Margin % Distribution
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, La-Z-Boy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where La-Z-Boy's Operating Margin % falls into.
La-Z-Boy Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
La-Z-Boy's Operating Margin % for the fiscal year that ended in Apr. 2023 is calculated as
* 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.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Thank you for viewing the detailed overview of La-Z-Boy's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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