Busi530 Forum 9

Matthew S. Racine

Rackspace Hosting

BUSI 530-D09

The place that you want to feel the most comfortable is your home. When you are looking to purchase a sofa La-Z Boy (LZB) is a name that most people know and trust. Reputation is particularly important in finance (Brealey, Myers & Marcus, 2012). La-Z-Boy has been around since 1928 putting out durable furniture with great taste. La-Z-Boy Incorporated manufactures, markets, imports, distributes, and retails upholstery products, accessories, and casegoods (wood) furniture products under the La-Z-Boy brand name primarily in the United States and Canada. LZB employees close to 8,000 people worldwide.

The economic outlook of the company depends largely on the economy. With the economy in a downturn people are not looking to redecorate their homes. Household furniture sales are closely linked to home sales (First Research, 2012).Properties sales are increasing and with baby boomers looking to retire soon. They will be looking to get more affordable housing and newer furniture.

The US furniture retailing industry includes about 25,000 companies with combined annual revenue of about $50 Billion (First Research, 2012). Being in a billion dollar industry, with a company that is maintaining its revenue and not going into debt is a great reason to invest in a company like La-Z-Boy. La-Z-Boy earning per share is $16.39 up from $9.84 back in December of 2011. With a Debt to Equity Ratio being at 0.0172 this shows that the company is sustainable in tough economic times without having to worry about borrowing money.

When thinking about what company to go with when it comes to investing money, you want to go with a name that you know and one that you can trust. LZB has the potential to increase in sells with their long term growth plan. I personally would invest in the company knowing that they handle their money well and still see room for more development.

References

La-Z-Boy. (2012). Retrieved from...