Best Buy Co. Inc (BBY)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 | 15,591,000 |
| Operating ROA | 10.52% | 11.36% | 17.36% | 12.54% | 12.89% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,574,000K ÷ $14,967,000K
= 10.52%
Best Buy Co. Inc's operating return on assets (operating ROA) has exhibited some fluctuations over the past five years.
In the most recent fiscal year of February 3, 2024, Best Buy's operating ROA stood at 10.52%, showing a slight decrease from the previous year's level of 11.36%. The company experienced a significant decrease in operating ROA in the fiscal year ended January 29, 2022, where it reached 17.36%, indicating a strong performance in utilizing its assets to generate operating income. However, in the fiscal year ended January 30, 2021, there was a decline to 12.54% in operating ROA.
Comparing these figures with the operating ROA of 12.89% in the fiscal year of February 1, 2020, we see a trend of fluctuation in Best Buy's ability to generate operating income from its assets efficiently.
Overall, the analysis suggests that Best Buy Co. Inc's operating ROA has shown fluctuating performance over the past five years, with some years indicating stronger asset utilization for generating operating income compared to others. It is essential for the company to assess the reasons behind these fluctuations and implement strategies to improve and stabilize its operating ROA for sustained financial performance.