Best Buy Co. Inc (BBY)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 | 43,638,000 |
| Receivables | US$ in thousands | 939,000 | 1,141,000 | 1,042,000 | 1,061,000 | 1,149,000 |
| Receivables turnover | 46.27 | 40.58 | 49.67 | 44.54 | 37.98 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $43,452,000K ÷ $939,000K
= 46.27
The receivables turnover ratio for Best Buy Co. Inc has been fluctuating over the past five years. In the most recent fiscal year (ending February 3, 2024), the company achieved a receivables turnover ratio of 46.27, indicating that the company collected its accounts receivable approximately 46 times during the year.
Comparing this to the previous years, we see that the receivables turnover ratio was 40.58 in the fiscal year ending January 28, 2023, 49.67 in the fiscal year ending January 29, 2022, 44.54 in the fiscal year ending January 30, 2021, and 37.98 in the fiscal year ending February 1, 2020.
The variability in the receivables turnover ratio suggests some inconsistency in the company's collection efficiency over the years. A higher turnover ratio generally indicates a more effective and efficient credit and collection process, as it shows that the company is collecting its accounts receivable more frequently.
Overall, the trend in Best Buy Co. Inc's receivables turnover ratio indicates that the company has been managing its accounts receivable effectively in recent years, with a notable improvement in the most recent fiscal year. Further analysis of the company's credit policies and collection procedures could provide insights into the reasons behind these fluctuations and help determine if there are areas for further improvement.