Best Buy Co. Inc (BBY)
Total asset 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 |
| Total assets | US$ in thousands | 14,782,000 | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 |
| Total asset turnover | 2.81 | 2.90 | 2.93 | 2.96 | 2.48 |
February 1, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $41,528,000K ÷ $14,782,000K
= 2.81
Based on the provided data, Best Buy Co. Inc's total asset turnover has shown a generally positive trend over the past five years. The total asset turnover ratio measures a company's ability to generate sales from its assets.
In January 2021, the total asset turnover was 2.48, indicating that for every dollar of assets, the company generated $2.48 in sales. This ratio increased to 2.96 by January 2022, reflecting an improvement in asset utilization efficiency.
Although there was a slight decrease to 2.93 in January 2023, the ratio remained relatively stable, suggesting consistent performance in leveraging assets to generate sales. In February 2024 and February 2025, the total asset turnover further decreased to 2.90 and 2.81, respectively.
Overall, Best Buy Co. Inc has maintained a healthy total asset turnover ratio, indicating effective management of its assets to drive sales. However, the decreasing trend in the later years warrants further analysis to understand the factors affecting asset turnover efficiency.