La-Z-Boy put out its Q1 results in August of this year, as reported in the Wall Street Journal. For what is generally a weak quarter for them (due largely to less retail demand in the summer months), La-Z-Boy reported strengthening sales and margins.

We can figure out La-Z-Boy’s turnover by calculating Credit Sales / Average AR.  Taking numbers from the quarterly Income Statement and Balance sheet, we get:

$318,913,000 / [($160,005,000 + $139,186,000) / 2] = 2.131 turnovers per quarter

Compared to the data we saw for the case, this turnover is looking a lot better.  From the periods 1991 to 1994, we were looking at a A/R days outstanding of around 80-90 days.  At the turnover calculated from this most recent quarter, La-Z-Boy has an A/R days outstanding of about 42.23 days, about half of what they were looking at two decades ago.

It’s clear that La-Z-Boy’s credit crisis from the mid ’90s is resolved, but it would also be worth an investor’s time to compare this turnover ratio with that of other companies in the furniture industry.

Sources:

http://online.wsj.com/article/BT-CO-20130820-710063.html

http://investors.la-z-boy.com/phoenix.zhtml?c=92596&p=irol-newsArticle&ID=1848822&highlight=