La Z Beneish M Score

LZB
 Stock
  

USD 26.45  0.06  0.23%   

This module uses fundamental data of La Z to approximate the value of its Beneish M Score. La Z M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see La Z Piotroski F Score and La Z Altman Z Score analysis.
  
La Z Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 430.11 Million. The current year Debt Current is expected to grow to about 81.2 M, whereas Issuance Repayment of Debt Securities is forecasted to decline to (130.6 K). La Z Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 18.48. The current year Long Term Debt to Equity is expected to grow to 0.001107, whereas Calculated Tax Rate is forecasted to decline to 24.84.
At this time, it appears that La-Z-Boy is an unlikely manipulator. The earnings manipulation may begin if La Z's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by La Z executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of La Z's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.75
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.09Focus
Asset QualityN/AFocus
Expense Coverage1.15Focus
Gross Margin Strengs0.92Focus
Accruals Factor1.15Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.8Focus
Financial Leverage Condition1.0Focus

La Z Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if La Z's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense654.2 M709.2 M
Significantly Down
Increasing
Slightly volatile
Revenues1.9 B2.4 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables160.1 M183.7 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net710.9 M658.9 M
Significantly Up
Increasing
Slightly volatile
Operating Income223.1 M206.8 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations91 M79 M
Fairly Up
Decreasing
Stable
Liabilities Non Current471.3 M436.8 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities729 M675.7 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Gross Margin35.8638.8648
Significantly Down
Increasing
Very volatile
Depreciation Amortization and Accretion121.6 M112.7 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current382.9 M354.8 M
Significantly Up
Increasing
Slightly volatile
Debt Current81.2 M75.3 M
Significantly Up
Increasing
Slightly volatile
Total Debt464.1 M430.1 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current788.8 M980.3 M
Significantly Down
Increasing
Very volatile
Current AssetsB951.8 M
Significantly Up
Increasing
Slightly volatile
Total Assets2.1 B1.9 B
Significantly Up
Increasing
Slightly volatile

La-Z-Boy Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between La Z's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards La Z in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find La Z's degree of accounting gimmicks and manipulations.

About La Z Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Total Assets

2.08 Billion

La Z Total Assets are projected to increase significantly based on the last few years of reporting. The past year's Total Assets were at 1.93 Billion

About La Z Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze La-Z-Boy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of La Z using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of La-Z-Boy based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan. La Z operates under Furnishings, Fixtures Appliances classification in the United States and is traded on New York Stock Exchange. It employs 12800 people.

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Additionally, see La Z Piotroski F Score and La Z Altman Z Score analysis. Note that the La-Z-Boy information on this page should be used as a complementary analysis to other La Z's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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When running La-Z-Boy price analysis, check to measure La Z's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy La Z is operating at the current time. Most of La Z's value examination focuses on studying past and present price action to predict the probability of La Z's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move La Z's price. Additionally, you may evaluate how the addition of La Z to your portfolios can decrease your overall portfolio volatility.
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Is La Z's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of La Z. If investors know La Z will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about La Z listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.65
Market Capitalization
1.1 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.0757
Return On Equity
0.21
The market value of La-Z-Boy is measured differently than its book value, which is the value of La Z that is recorded on the company's balance sheet. Investors also form their own opinion of La Z's value that differs from its market value or its book value, called intrinsic value, which is La Z's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because La Z's market value can be influenced by many factors that don't directly affect La Z's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between La Z's value and its price as these two are different measures arrived at by different means. Investors typically determine La Z value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, La Z's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.