Best Buy Co. Inc (BBY)
Inventory turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 32,143,000 | 33,849,000 | 36,386,000 | 40,121,000 | 36,689,000 |
| Inventory | US$ in thousands | 5,085,000 | 4,958,000 | 5,140,000 | 5,965,000 | 5,612,000 |
| Inventory turnover | 6.32 | 6.83 | 7.08 | 6.73 | 6.54 |
February 1, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $32,143,000K ÷ $5,085,000K
= 6.32
The inventory turnover ratio for Best Buy Co. Inc has shown a generally positive trend over the past five years, increasing from 6.54 in January 30, 2021, to 6.73 in January 29, 2022, further rising to 7.08 in January 28, 2023. However, there was a slight decrease to 6.83 in February 3, 2024, followed by a dip to 6.32 in February 1, 2025. Overall, the average inventory turnover ratio over the period indicates that Best Buy was able to turn over its inventory approximately 6.70 times each year, which suggests efficient inventory management. However, the recent decline in the ratio may warrant further investigation to ensure optimal inventory control and sales efficiency in the future.