Best Buy Co. Inc (BBY)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,622,000 | 1,651,000 | 1,663,000 | 1,657,000 | 1,789,000 | 1,974,000 | 2,278,000 | 2,712,000 | 3,028,000 | 3,273,000 | 3,163,000 | 2,926,000 | 2,377,000 | 2,301,000 | 2,135,000 | 1,881,000 | 1,993,000 | 1,998,000 | 1,939,000 | 1,961,000 |
| 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 |
| Pretax margin | 3.73% | 3.79% | 3.75% | 3.67% | 3.86% | 4.12% | 4.63% | 5.34% | 5.85% | 6.25% | 6.05% | 5.81% | 5.03% | 5.05% | 4.92% | 4.37% | 4.57% | 4.62% | 4.50% | 4.57% |
February 3, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,622,000K ÷ $43,452,000K
= 3.73%
The pretax margin of Best Buy Co. Inc has shown some fluctuations over the past few quarters, ranging from a low of 3.67% in April 29, 2023, to a high of 6.25% in January 29, 2022. The trend indicates a slight decrease in the pretax margin from early 2022 onwards, with a gradual decline from 5.85% in January 29, 2022, to 3.73% in the most recent period, February 3, 2024.
The pretax margin is a measure of a company's efficiency in generating profits before accounting for taxes, and a declining trend may suggest challenges in managing costs or maintaining revenue growth. It is important for Best Buy Co. Inc to closely monitor its cost structure and revenue streams to improve profitability and potentially enhance the pretax margin in the future.
Additionally, comparing the pretax margin to industry benchmarks or historical performance can provide further insights into the company's financial health and operational efficiency. This analysis can help identify areas for improvement and guide strategic decision-making to enhance profitability in the long term.