Best Buy Co. Inc (BBY)
Net profit margin
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 927,000 | 1,241,000 | 1,419,000 | 2,454,000 | 1,798,000 |
| Revenue | US$ in thousands | 41,528,000 | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 |
| Net profit margin | 2.23% | 2.86% | 3.06% | 4.74% | 3.80% |
February 1, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $927,000K ÷ $41,528,000K
= 2.23%
The net profit margin of Best Buy Co. Inc has exhibited fluctuations over the past five fiscal years. It was recorded at 3.80% as of January 30, 2021, showing a moderate level of profitability. The margin improved notably to 4.74% by January 29, 2022, indicating enhanced efficiency in generating profits relative to revenue during that period.
However, there was a decline in the net profit margin to 3.06% by January 28, 2023, suggesting a reduction in profitability compared to the previous year. This trend continued into the subsequent years, with the margin decreasing to 2.86% by February 3, 2024, and further dropping to 2.23% by February 1, 2025. These declines may indicate challenges in managing costs and increasing revenues relative to the net profit generated.
Overall, the fluctuation in Best Buy Co. Inc's net profit margin highlights the importance of closely monitoring and managing both revenue and expenses to sustain and improve profitability levels over time.