Best Buy Co. Inc (BBY)
Operating profit margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,574,000 | 1,795,000 | 3,039,000 | 2,391,000 | 2,009,000 |
| Revenue | US$ in thousands | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 | 43,638,000 |
| Operating profit margin | 3.62% | 3.88% | 5.87% | 5.06% | 4.60% |
February 3, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,574,000K ÷ $43,452,000K
= 3.62%
The operating profit margin of Best Buy Co. Inc has shown a gradual decline over the past five years, indicating a decreasing trend in the company's ability to generate profits from its core operations. The margin stood at 3.62% as of February 3, 2024, down from 3.88% in January 28, 2023. This decline is significant compared to the 5.87% margin recorded on January 29, 2022, and the 5.06% margin on January 30, 2021. The lowest operating profit margin in the period was 4.60% on February 1, 2020.
The decreasing trend in operating profit margin could be a cause for concern as it may indicate challenges in controlling operating expenses or pressures on pricing and revenue generation. This trend suggests that Best Buy Co. Inc may need to address cost efficiency and revenue growth strategies to improve its profitability from core operations in the future.