Best Buy Co. Inc (BBY)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 | 43,638,000 |
| Property, plant and equipment | US$ in thousands | 2,260,000 | 2,352,000 | 2,250,000 | 2,260,000 | 2,328,000 |
| Fixed asset turnover | 19.23 | 19.68 | 23.00 | 20.91 | 18.74 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $43,452,000K ÷ $2,260,000K
= 19.23
The fixed asset turnover ratio for Best Buy Co. Inc has shown variability over the past five years, ranging from 18.74 in FY2020 to 23.00 in FY2022. This ratio measures the effectiveness of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.
In the most recent fiscal year, the fixed asset turnover ratio stood at 19.23, slightly lower than the preceding year's ratio of 19.68. While the ratio has fluctuated, it remains relatively high, indicating that Best Buy Co. Inc is efficiently utilizing its fixed assets to generate sales revenue. However, the downward trend in the fixed asset turnover ratio over the past two years may warrant further investigation into the company's asset management efficiency and operational strategies.