La-Z-Boy has 411.7 M in debt with debt to equity (D/E) ratio of 0.52, which is OK given its current industry classification. The entity has a current ratio of 1.32, which is typical for the industry and considered as normal. Debt can assist La Z until it has trouble settling it off, either with new capital or with free cash flow. So, La Z's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like La-Z-Boy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for La Z to invest in growth at high rates of return. When we think about La Z's use of debt, we should always consider it together with cash and equity. The company owns a Beta (Systematic Risk) of 1.1206, which conveys a somewhat significant risk relative to the market. Let's try to break down what La Z's beta means in this case. La Z returns are very sensitive to returns on the market. As the market goes up or down, La Z is expected to follow. Even though it is essential to pay attention to La-Z-Boy existing price patterns, it is always good to be careful when utilizing equity price patterns. Our approach into estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. La Z exposes twenty-one different technical indicators, which can help you to evaluate its performance. La-Z-Boy has an expected return of -0.29%. Please be advised to verify La-Z-Boy information ratio, and the relationship between the downside deviation and value at risk to decide if La-Z-Boy performance from the past will be repeated in the future.
