Best Buy Co. Inc (BBY)
Inventory turnover
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 33,849,000 | 33,999,000 | 34,730,000 | 35,409,000 | 36,386,000 | 37,643,000 | 38,496,000 | 39,493,000 | 40,121,000 | 40,463,000 | 40,413,000 | 39,014,000 | 36,689,000 | 35,256,000 | 33,601,000 | 33,214,000 | 33,590,000 | 33,147,000 | 33,010,000 | 32,907,000 |
| Inventory | US$ in thousands | 4,958,000 | 7,562,000 | 5,651,000 | 5,219,000 | 5,140,000 | 7,294,000 | 6,043,000 | 6,258,000 | 5,965,000 | 8,553,000 | 6,417,000 | 5,721,000 | 5,612,000 | 7,459,000 | 4,136,000 | 3,993,000 | 5,174,000 | 7,569,000 | 5,208,000 | 5,195,000 |
| Inventory turnover | 6.83 | 4.50 | 6.15 | 6.78 | 7.08 | 5.16 | 6.37 | 6.31 | 6.73 | 4.73 | 6.30 | 6.82 | 6.54 | 4.73 | 8.12 | 8.32 | 6.49 | 4.38 | 6.34 | 6.33 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $33,849,000K ÷ $4,958,000K
= 6.83
Inventory turnover is a key financial ratio that indicates the efficiency with which a company manages its inventory. Best Buy Co. Inc's inventory turnover over the past few quarters has displayed a fluctuating trend.
The inventory turnover ratio for Best Buy Co. Inc ranged from a low of 4.38 to a high of 8.32 over the last few quarters, with an average value of approximately 6.33. This suggests that, on average, Best Buy is able to sell and replace its inventory about 6.33 times a year.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling products and replenishing stock. This can result in lower carrying costs and reduced risk of obsolescence.
However, the fluctuation in Best Buy's inventory turnover suggests some variability in its inventory management practices. It is important for the company to analyze the reasons behind these fluctuations and work towards maintaining a consistent and efficient inventory turnover ratio over time.