Best Buy Co. Inc (BBY)
Total asset 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 |
| Total assets | US$ in thousands | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 | 15,591,000 |
| Total asset turnover | 2.90 | 2.93 | 2.96 | 2.48 | 2.80 |
February 3, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $43,452,000K ÷ $14,967,000K
= 2.90
The total asset turnover ratio measures the efficiency with which a company utilizes its total assets to generate sales revenue. In the case of Best Buy Co. Inc, the total asset turnover has fluctuated over the past five years, ranging from 2.48 in January 30, 2021, to 2.96 in January 29, 2022. This indicates that the company has been successful in generating sales relative to its total assets, with higher ratios reflecting better efficiency in asset utilization. However, it is important to note that the ratio decreased slightly to 2.90 in February 3, 2024, which may suggest a potential decrease in the efficiency of asset utilization. Overall, Best Buy Co. Inc has demonstrated relatively strong performance in utilizing its total assets to generate sales revenue over the years, although recent trends should be monitored for any potential changes in asset efficiency.