Best Buy Co. Inc (BBY)
Working capital turnover
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 41,528,000 | 42,226,000 | 42,537,000 | 42,832,000 | 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 |
| Total current assets | US$ in thousands | 8,224,000 | 9,955,000 | 8,562,000 | 7,753,000 | 7,897,000 | 9,865,000 | 8,304,000 | 7,762,000 | 8,802,000 | 9,922,000 | 8,344,000 | 8,315,000 | 10,539,000 | 13,520,000 | 12,040,000 | 11,268,000 | 12,540,000 | 14,551,000 | 10,683,000 | 8,996,000 |
| Total current liabilities | US$ in thousands | 8,016,000 | 9,948,000 | 8,451,000 | 7,649,000 | 7,909,000 | 10,010,000 | 8,433,000 | 7,908,000 | 8,979,000 | 10,170,000 | 8,650,000 | 8,635,000 | 10,674,000 | 11,946,000 | 10,357,000 | 9,641,000 | 10,521,000 | 12,945,000 | 10,080,000 | 8,804,000 |
| Working capital turnover | 199.65 | 6,032.29 | 383.22 | 411.85 | — | — | — | — | — | — | — | — | — | 33.25 | 31.06 | 30.94 | 23.41 | 28.34 | 72.03 | 224.26 |
February 1, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $41,528,000K ÷ ($8,224,000K – $8,016,000K)
= 199.65
The working capital turnover ratio is a measure of how efficiently a company is able to generate sales revenue relative to its working capital. Best Buy Co. Inc's working capital turnover has fluctuated significantly over the reported periods.
In May 2020, the company had a very high working capital turnover of 224.26, indicating that it was generating significant sales revenue relative to its level of working capital. However, this ratio dropped to 72.03 in August 2020, and continued to decrease to 28.34 by October 31, 2020, suggesting a decrease in efficiency in utilizing working capital to drive sales.
Subsequently, there was a slight improvement in the ratio as it increased to 30.94 in May 2021 and peaked at 33.25 by October 30, 2021. However, the ratio remained relatively stable around 30-33 in the following reported periods. Notably, in November 2, 2024, there was a significant spike in the ratio to 6,032.29, which may be due to the company's working capital management or operational changes.
It is important to note that the working capital turnover ratio values are not available for the most recent reporting periods. These missing values may be due to data unavailability, changes in reporting practices, or other factors.
Overall, the analysis of Best Buy's working capital turnover indicates fluctuations in the efficiency of utilizing working capital to generate sales revenue over the reported periods, with some significant variations observed. It would be essential for investors and stakeholders to monitor future trends in this ratio to assess the company's financial management and operational efficiency.