Best Buy Co. Inc (BBY)
Profitability ratios
Return on sales
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 22.60% | 22.42% | 22.29% | 22.22% | 22.10% | 21.91% | 21.73% | 21.52% | 21.41% | 21.46% | 21.84% | 22.21% | 22.49% | 22.68% | 22.69% | 22.49% | 22.37% | 22.55% | 22.64% | 22.86% |
| Operating profit margin | 3.04% | 3.80% | 3.78% | 3.68% | 3.62% | 3.70% | 3.65% | 3.64% | 3.88% | 4.18% | 4.68% | 5.38% | 5.87% | 6.25% | 6.04% | 5.82% | 5.06% | 5.11% | 4.97% | 4.42% |
| Pretax margin | 3.13% | 3.93% | 3.88% | 3.80% | 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% |
| Net profit margin | 2.23% | 3.01% | 2.96% | 2.90% | 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% |
Best Buy Co. Inc's Profitability Ratios have shown some fluctuations over the past few years. The Gross Profit Margin has gradually declined from 22.86% in May 2, 2020, to 21.41% in January 28, 2023, before fluctuating slightly thereafter. This implies that the company's ability to generate profits from its core business activities has slightly decreased over time.
Similarly, the Operating Profit Margin followed a similar trend, starting at 4.42% in May 2, 2020, peaking at 6.25% in October 30, 2021, and then declining to 3.04% in February 1, 2025. This indicates that the company's operational efficiency in generating profits has fluctuated significantly during the period.
The Pretax Margin and Net Profit Margin exhibit comparable trends, reflecting the overall profitability of the company. The Pretax Margin decreased from 4.37% in May 2, 2020, to 3.13% in February 1, 2025. The Net Profit Margin, representing the bottom line profitability, showed a decline from 3.33% in May 2, 2020, to 2.23% in February 1, 2025.
These declining trends in profitability ratios suggest that Best Buy Co. Inc is facing challenges in maintaining its profitability levels, possibly due to factors such as increased competition, pricing pressures, or rising operating expenses. It may be crucial for the company to focus on cost management, revenue generation strategies, and operational efficiencies to improve its profitability moving forward.
Return on investment
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.54% | 9.44% | 10.30% | 10.68% | 10.52% | 9.54% | 10.58% | 11.19% | 11.36% | 11.76% | 14.96% | 17.91% | 17.36% | 16.26% | 17.01% | 16.55% | 12.54% | 10.97% | 12.40% | 12.20% |
| Return on assets (ROA) | 6.27% | 7.46% | 8.06% | 8.43% | 8.29% | 7.56% | 8.42% | 9.00% | 8.98% | 9.11% | 11.49% | 14.43% | 14.02% | 13.15% | 13.65% | 12.62% | 9.43% | 8.15% | 9.36% | 9.20% |
| Return on total capital | 34.16% | 40.51% | 39.96% | 39.87% | 39.81% | 43.15% | 42.94% | 43.01% | 46.12% | 48.44% | 56.53% | 69.52% | 72.07% | 60.01% | 57.28% | 55.08% | 41.59% | 44.14% | 49.82% | 48.23% |
| Return on equity (ROE) | 33.01% | 41.21% | 40.55% | 40.33% | 40.65% | 45.38% | 45.50% | 47.33% | 50.77% | 51.79% | 61.27% | 79.51% | 81.26% | 61.80% | 58.50% | 53.73% | 39.20% | 42.27% | 43.12% | 42.08% |
Best Buy Co. Inc's profitability ratios have shown fluctuations over the past few years.
1. Operating return on assets (Operating ROA) has fluctuated between 9.54% to 17.91%. It peaked at 17.91% on April 30, 2022, but decreased to 10.30% on August 3, 2024.
2. Return on assets (ROA) ranged from 6.27% to 14.43%. The highest was recorded on April 30, 2022, at 14.43%, but dropped to 8.06% on August 3, 2024.
3. Return on total capital fluctuated between 39.81% to 72.07%. It peaked at 72.07% on January 29, 2022, and declined to 34.16% on February 1, 2025.
4. Return on equity (ROE) varied from 33.01% to 81.26%. The highest ROE was 81.26% on January 29, 2022, while the lowest was recorded at 33.01% on February 1, 2025.
Overall, the profitability ratios of Best Buy Co. Inc have shown some volatility, with fluctuations in operating performance, asset utilization, and return on capital and equity. It is crucial for the company to maintain a balance in these ratios to ensure sustained profitability and long-term growth.