Best Buy Co. Inc (BBY)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 43,452,000 | 43,541,000 | 44,372,000 | 45,118,000 | 46,298,000 | 47,928,000 | 49,251,000 | 50,771,000 | 51,761,000 | 52,333,000 | 52,276,000 | 50,337,000 | 47,262,000 | 45,521,000 | 43,432,000 | 43,058,000 | 43,638,000 | 43,243,000 | 43,069,000 | 42,912,000 |
| Receivables | US$ in thousands | 939,000 | 901,000 | 856,000 | 860,000 | 1,141,000 | 1,050,000 | 840,000 | 804,000 | 1,042,000 | 1,016,000 | 883,000 | 850,000 | 1,061,000 | 1,028,000 | 906,000 | 749,000 | 1,149,000 | 1,056,000 | 966,000 | 833,000 |
| 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 |
February 3, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $43,452,000K ÷ $939,000K
= 46.27
The receivables turnover ratio for Best Buy Co. Inc has shown variations over the periods analyzed. The ratio indicates the company's efficiency in collecting outstanding receivables from customers during a specific time frame.
From November 2019 to February 2024, the receivables turnover ratio ranged from 37.98 to 63.15, with an average turnover of approximately 48.85. This suggests that Best Buy has, on average, been able to collect outstanding receivables around 48 times a year.
There was a consistent improvement in the receivables turnover ratio from May 2019 to April 2022, indicating that the company was becoming more efficient in collecting receivables from customers during this period. However, from May 2022 to Feb 2024, the ratio showed slight fluctuations, indicating some challenges in receivables management during these later periods.
Overall, it is essential for Best Buy to continue monitoring and managing its receivables turnover ratio to ensure efficient collections and cash flow management.