Best Buy Co. Inc (BBY)
Fixed asset turnover
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 41,528,000 | 42,226,000 | 42,537,000 | 42,832,000 | 43,452,000 | 43,541,000 | 44,372,000 | 45,118,000 | 46,298,000 | 47,928,000 | 49,251,000 | 50,771,000 | 51,761,000 | 52,333,000 | 52,276,000 | 50,337,000 | 47,262,000 | 45,521,000 | 43,432,000 | 43,058,000 |
| Property, plant and equipment | US$ in thousands | 2,122,000 | 2,196,000 | 2,183,000 | 2,196,000 | 2,260,000 | 2,313,000 | 2,305,000 | 2,321,000 | 2,352,000 | 2,373,000 | 2,319,000 | 2,251,000 | 2,250,000 | 2,256,000 | 2,226,000 | 2,233,000 | 2,260,000 | 2,265,000 | 2,277,000 | 2,291,000 |
| Fixed asset turnover | 19.57 | 19.23 | 19.49 | 19.50 | 19.23 | 18.82 | 19.25 | 19.44 | 19.68 | 20.20 | 21.24 | 22.55 | 23.00 | 23.20 | 23.48 | 22.54 | 20.91 | 20.10 | 19.07 | 18.79 |
February 1, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $41,528,000K ÷ $2,122,000K
= 19.57
The fixed asset turnover ratio of Best Buy Co. Inc has shown a generally increasing trend from May 2, 2020 to February 1, 2025. The ratio has improved from 18.79 in May 2020 to 19.57 in February 2025. This indicates that the company has been able to generate more revenue per dollar of fixed assets invested, showcasing efficient utilization of its fixed assets over time.
However, there have been fluctuations in the ratio over the period, with some peaks and troughs observed. The highest fixed asset turnover ratio was recorded in July 31, 2021, at 23.48, while the lowest ratio was seen in October 28, 2023, at 18.82. This variability could be due to changes in sales volume, asset base, or strategic decisions impacting the utilization of fixed assets.
Overall, the increasing trend in the fixed asset turnover ratio is a positive indicator of Best Buy's ability to effectively manage and utilize its fixed assets to generate revenue. The company's ability to sustain and potentially improve this ratio in the future will be crucial for its operational efficiency and financial performance.