Best Buy Co. Inc (BBY)
Fixed asset turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 41,528,000 | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 |
| Property, plant and equipment | US$ in thousands | 2,122,000 | 2,260,000 | 2,352,000 | 2,250,000 | 2,260,000 |
| Fixed asset turnover | 19.57 | 19.23 | 19.68 | 23.00 | 20.91 |
February 1, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $41,528,000K ÷ $2,122,000K
= 19.57
The fixed asset turnover ratio measures how effectively Best Buy Co. Inc is generating revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.
Based on the data provided, Best Buy Co. Inc's fixed asset turnover has fluctuated over the past five years. In January 2022, the ratio was at its highest point of 23.00, implying that the company generated $23 in revenue for every $1 invested in fixed assets. This suggests strong efficiency in asset utilization.
However, there was a slight decline in the ratio in the following years, with values of 19.68 in January 2023, 19.23 in February 2024, and 19.57 in February 2025. Despite these decreases, the ratios indicate that Best Buy Co. Inc is still effectively using its fixed assets to generate revenue.
Overall, the trend in Best Buy Co. Inc's fixed asset turnover ratio suggests that the company has been maintaining a relatively high level of efficiency in utilizing its fixed assets to drive sales, although there have been some fluctuations in recent years.