Best Buy Co. Inc (BBY)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 33,849,000 | 36,386,000 | 40,121,000 | 36,689,000 | 33,590,000 |
| Inventory | US$ in thousands | 4,958,000 | 5,140,000 | 5,965,000 | 5,612,000 | 5,174,000 |
| Inventory turnover | 6.83 | 7.08 | 6.73 | 6.54 | 6.49 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $33,849,000K ÷ $4,958,000K
= 6.83
Best Buy Co. Inc's inventory turnover has shown a consistent trend over the past five years, with the ratio fluctuating within a relatively narrow range. The inventory turnover ratio measures how efficiently the company manages its inventory by dividing the cost of goods sold by the average inventory for the period.
The latest inventory turnover ratio for Best Buy Co. Inc, as of February 3, 2024, is 6.83. This indicates that the company sold and replaced its inventory approximately 6.83 times during the fiscal year. A higher inventory turnover ratio generally signifies that the company is efficiently managing its inventory levels and selling products quickly.
Comparing this ratio to previous years, we observe a slight decrease from the prior year (7.08 in 2023) but still within a consistent range. This suggests that Best Buy Co. Inc has been able to maintain a relatively stable level of inventory turnover efficiency over the years.
Overall, the inventory turnover ratios for Best Buy Co. Inc indicate that the company has been effectively managing its inventory and turning over its stock at a reasonable pace. It is essential for the company to continue monitoring and optimizing its inventory levels to support its operational efficiency and financial performance.