Best Buy Co. Inc (BBY)
Working capital 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 current assets | US$ in thousands | 7,897,000 | 8,802,000 | 10,539,000 | 12,540,000 | 8,857,000 |
| Total current liabilities | US$ in thousands | 7,909,000 | 8,979,000 | 10,674,000 | 10,521,000 | 8,060,000 |
| Working capital turnover | — | — | — | 23.41 | 54.75 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $43,452,000K ÷ ($7,897,000K – $7,909,000K)
= —
Based on the data provided, the working capital turnover for Best Buy Co. Inc was not available for the fiscal years ending February 3, 2024, and January 28, 2023. However, in the preceding years, the trend indicates a significant decline in the working capital turnover ratio.
For the fiscal year ending January 29, 2022, the working capital turnover ratio was not available. In the fiscal year ending January 30, 2021, the working capital turnover ratio was 23.41, showing a decrease compared to the previous year. This decrease suggests that the company may have been less efficient in generating net sales relative to its working capital during that period.
Furthermore, in the fiscal year ending February 1, 2020, the working capital turnover ratio significantly declined to 54.75, indicating a further reduction in efficiency in utilizing working capital to drive sales. This declining trend in the working capital turnover ratio over the years may raise concerns about the company's ability to effectively manage its working capital and optimize its operating cycle.
Overall, the analysis of the working capital turnover ratio for Best Buy Co. Inc suggests a declining trend in efficiency in utilizing working capital to generate sales in recent years, which may indicate potential inefficiencies in the company's operations or working capital management strategies.