Best Buy Co. Inc (BBY)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 8,857,000 | 10,175,000 | 8,192,000 | 8,014,000 |
| Total current liabilities | US$ in thousands | 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 | 8,060,000 | 9,726,000 | 7,576,000 | 7,171,000 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | 33.25 | 31.06 | 30.94 | 23.41 | 28.34 | 72.03 | 224.26 | 54.75 | 96.31 | 69.92 | 50.90 |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $43,452,000K ÷ ($7,897,000K – $7,909,000K)
= —
The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that a company is effectively utilizing its working capital to support sales.
Looking at the historical data for Best Buy Co. Inc, the working capital turnover ratio has fluctuated over the periods provided. It is noteworthy that the ratio has shown a significant level of volatility in recent periods.
Notably, the working capital turnover ratio for Best Buy Co. Inc was 33.25 for the quarter ended October 30, 2021. This indicates that the company generated $33.25 in sales for each dollar of working capital invested. This was a significant improvement compared to the previous quarter, indicating that the company was able to efficiently utilize its working capital to drive sales growth.
However, the ratio spiked to 224.26 for the quarter ended August 1, 2020. This exceptionally high ratio suggests that Best Buy Co. Inc experienced a period of exceptional efficiency in leveraging its working capital to generate sales revenue during that quarter.
Overall, while the working capital turnover ratio for Best Buy Co. Inc has shown fluctuations, it is crucial for investors and analysts to closely monitor the trend in this ratio to assess the company's ability to efficiently manage its working capital in supporting sales growth.