Best Buy Co. Inc (BBY)
Receivables turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 41,528,000 | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 |
| Receivables | US$ in thousands | 1,044,000 | 939,000 | 1,141,000 | 1,042,000 | 1,061,000 |
| Receivables turnover | 39.78 | 46.27 | 40.58 | 49.67 | 44.54 |
February 1, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $41,528,000K ÷ $1,044,000K
= 39.78
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. In the case of Best Buy Co. Inc, the receivables turnover ratio has shown fluctuations over the past five years.
As of January 30, 2021, the receivables turnover ratio stood at 44.54, indicating that Best Buy collected its outstanding receivables approximately 44.54 times during that fiscal year.
By January 29, 2022, the ratio improved to 49.67, suggesting that Best Buy became more effective in collecting payments from customers.
However, by January 28, 2023, the receivables turnover ratio decreased to 40.58, which may imply that the company took longer to collect payments from customers compared to the previous year.
The ratio then increased to 46.27 by February 3, 2024, showing a positive trend in receivables turnover.
Most recently, as of February 1, 2025, the ratio dropped to 39.78, indicating a potential slowdown in collecting receivables.
Overall, fluctuations in the receivables turnover ratio may indicate changes in Best Buy's credit policies, customer payment behaviors, or the efficiency of its collection processes.