Best Buy Co. Inc (BBY)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,241,000 | 1,276,000 | 1,290,000 | 1,322,000 | 1,419,000 | 1,550,000 | 1,772,000 | 2,200,000 | 2,454,000 | 2,644,000 | 2,536,000 | 2,234,000 | 1,798,000 | 1,727,000 | 1,629,000 | 1,435,000 | 1,541,000 | 1,531,000 | 1,515,000 | 1,521,000 |
| 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 |
| Net profit margin | 2.86% | 2.93% | 2.91% | 2.93% | 3.06% | 3.23% | 3.60% | 4.33% | 4.74% | 5.05% | 4.85% | 4.44% | 3.80% | 3.79% | 3.75% | 3.33% | 3.53% | 3.54% | 3.52% | 3.54% |
February 3, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,241,000K ÷ $43,452,000K
= 2.86%
The net profit margin of Best Buy Co. Inc has shown some fluctuations over the past several quarters. The net profit margin measures the company's profitability by indicating how much of each dollar of revenue is turned into profit after all expenses are deducted.
From November 2019 to February 2020, the net profit margin remained relatively stable around 3.5%. However, in the subsequent quarters, there was a gradual decline in the net profit margin, with a notable decrease to 2.86% in February 2024.
The decline in the net profit margin signals that Best Buy Co. Inc may be facing challenges in controlling costs or generating sufficient revenue to maintain profitability. It is important for the company to closely monitor its expenses, optimize its operations, and potentially explore strategies to improve its revenue streams to sustain or improve its profitability in the future.