Best Buy Co. Inc (BBY)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 32,143,000 | 32,758,000 | 33,054,000 | 33,315,000 | 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 |
| Inventory | US$ in thousands | 5,085,000 | 7,806,000 | 5,706,000 | 5,225,000 | 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 |
| Inventory turnover | 6.32 | 4.20 | 5.79 | 6.38 | 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 |
February 1, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $32,143,000K ÷ $5,085,000K
= 6.32
The inventory turnover for Best Buy Co. Inc has fluctuated over the past few years, indicating varying efficiencies in managing its inventory. From May 2, 2020, to August 1, 2020, the turnover decreased slightly from 8.32 to 8.12. However, there was a more significant drop to 4.73 by October 31, 2020, which may indicate potential inventory management challenges or slower sales.
The company showed improvement in inventory turnover in the following quarters, with levels ranging from 6.30 to 7.08. These values suggest that Best Buy was able to sell through its inventory at a faster pace during these periods. However, the turnover rate dropped to 4.50 by October 28, 2023, before gradually increasing again.
Overall, the inventory turnover ratio for Best Buy Co. Inc has shown fluctuations, with some periods of improvement and others with lower turnover rates. Continuous monitoring and management of inventory levels will be crucial for the company to effectively control costs and maximize profitability.