Best Buy Co. Inc (BBY)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	46.27	48.33	51.84	52.46	40.58	45.65	58.63	63.15	49.67	51.51	59.20	59.22	44.54	44.28	47.94	57.49	37.98	40.95	44.58	51.52
Payables turnover	7.30	4.77	6.35	7.26	6.40	5.33	7.12	7.19	5.90	4.81	5.82	6.13	5.26	3.87	5.08	7.50	6.35	4.58	6.54	6.97
Working capital turnover	—	—	—	—	—	—	—	—	—	33.25	31.06	30.94	23.41	28.34	72.03	224.26	54.75	96.31	69.92	50.90

Best Buy Co. Inc's inventory turnover has shown some fluctuations over the past few quarters, ranging from 4.50 to 8.32 times. The company seems to be managing its inventory well, with a generally healthy turnover rate, indicating efficient inventory management and good sales performance.

The receivables turnover ratio has also been relatively stable, fluctuating between 37.98 and 63.15 times. This suggests that Best Buy may be effectively collecting its accounts receivable, with a higher turnover ratio implying faster collection of payments from customers.

In terms of payables turnover, the company has maintained a consistent range of 4.58 to 7.50 times over the periods analyzed. A higher payables turnover ratio indicates that Best Buy is paying off its suppliers more frequently, which could potentially help the company manage its working capital effectively.

The working capital turnover ratio, while not available for all periods, shows a significant increase in recent quarters, especially in August 2020 and May 2021. This suggests that Best Buy has been utilizing its working capital more efficiently to generate sales revenue. However, the sudden spike in working capital turnover in some periods may require further investigation to understand the underlying reasons behind the increase.

Overall, the activity ratios for Best Buy Co. Inc demonstrate efficient management of inventory, receivables, payables, and working capital, which are essential factors in assessing the company's operational performance and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	53.46	81.18	59.39	53.80	51.56	70.73	57.30	57.84	54.27	77.15	57.96	53.52	55.83	77.22	44.93	43.88	56.22	83.35	57.59	57.62
Days of sales outstanding (DSO)	days	7.89	7.55	7.04	6.96	9.00	8.00	6.23	5.78	7.35	7.09	6.17	6.16	8.19	8.24	7.61	6.35	9.61	8.91	8.19	7.09
Number of days of payables	days	50.00	76.58	57.50	50.24	57.05	68.42	51.26	50.76	61.89	75.82	62.73	59.50	69.43	94.31	71.84	48.66	57.46	79.64	55.78	52.33

Days of Inventory on Hand (DOH) measures how many days, on average, Best Buy holds inventory before selling it. A lower DOH indicates efficient inventory management. Best Buy's DOH has fluctuated over the periods, ranging from 44.93 days to 83.35 days, suggesting variability in inventory turnover efficiency.

Days of Sales Outstanding (DSO) shows the average number of days it takes Best Buy to collect revenue from credit sales. A lower DSO indicates prompt collections. Best Buy's DSO has varied between 5.78 days and 9.61 days, indicating relatively stable collection periods.

Number of Days of Payables demonstrates how long Best Buy takes to pay its suppliers. A higher number suggests that the company takes longer to settle its payables. Best Buy's payables days have ranged from 48.66 days to 94.31 days, indicating some variability in payment terms.

Overall, while Best Buy shows some fluctuations in its activity ratios, it is essential to consider these metrics collectively to understand the company's liquidity, efficiency, and working capital management.

Long-term

	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
Fixed asset turnover	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	18.74	18.33	18.24	18.39
Total asset turnover	2.90	2.58	2.90	3.07	2.93	2.82	3.19	3.33	2.96	2.60	2.81	2.84	2.48	2.15	2.49	2.76	2.80	2.55	2.88	2.95

The fixed asset turnover ratio for Best Buy Co. Inc has remained relatively stable over the past two years, ranging from a high of 23.48 to a low of 18.24. This implies that the company generates approximately $19 to $23 in sales for every dollar invested in fixed assets during the period. The consistency in this ratio suggests that Best Buy is efficiently utilizing its fixed assets to drive revenue.

On the other hand, the total asset turnover ratio has shown more variability, fluctuating between 2.15 and 3.33 over the same period. This ratio indicates that Best Buy generates sales of approximately $2.15 to $3.33 for every dollar of total assets. The fluctuations in this ratio may be attributed to changes in the company's asset base or sales performance.

Overall, both ratios demonstrate that Best Buy Co. Inc is effectively managing its assets to drive revenue generation. The company's ability to maintain a stable fixed asset turnover ratio and adapt to fluctuations in total asset turnover reflects its efficiency in utilizing assets to generate sales.