Best Buy Co. Inc (BBY)
Pretax margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,622,000 | 1,789,000 | 3,028,000 | 2,377,000 | 1,993,000 |
| Revenue | US$ in thousands | 43,452,000 | 46,298,000 | 51,761,000 | 47,262,000 | 43,638,000 |
| Pretax margin | 3.73% | 3.86% | 5.85% | 5.03% | 4.57% |
February 3, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,622,000K ÷ $43,452,000K
= 3.73%
The pretax margin of Best Buy Co. Inc has experienced fluctuations over the past five years. The trend indicates a peak in pretax margin at 5.85% in fiscal year 2022, followed by a slight decline in the subsequent years. In fiscal year 2024, the pretax margin decreased further to 3.73%, reflecting potential challenges or changes in the company's financial performance. Despite the fluctuations, maintaining a positive pretax margin demonstrates the company's ability to generate profits before accounting for taxes and indicates its efficiency in managing operating expenses relative to its revenue. Further analysis of the underlying factors contributing to these fluctuations would be necessary to assess the long-term sustainability and profitability of Best Buy Co. Inc.