Best Buy Co. Inc (BBY)
Return on assets (ROA)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 927,000 | 1,241,000 | 1,419,000 | 2,454,000 | 1,798,000 |
| Total assets | US$ in thousands | 14,782,000 | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 |
| ROA | 6.27% | 8.29% | 8.98% | 14.02% | 9.43% |
February 1, 2025 calculation
ROA = Net income ÷ Total assets
= $927,000K ÷ $14,782,000K
= 6.27%
Best Buy Co. Inc's return on assets (ROA) has shown fluctuations over the past five years. As of February 1, 2025, Best Buy Co. Inc's ROA stood at 6.27%, indicating that the company generated a net income of approximately 6.27 cents for every dollar of assets it possesses.
Analyzing the trend over the previous years, the ROA increased from 9.43% on January 30, 2021, to a peak of 14.02% on January 29, 2022, suggesting improved asset utilization or profitability during that period. However, the ROA declined in the following years, reaching 8.98% on January 28, 2023, 8.29% on February 3, 2024, and finally dropping to the most recent figure of 6.27% on February 1, 2025.
The decreasing trend in ROA from 2022 onwards may indicate potential challenges in maintaining or enhancing the company's profitability relative to its asset base. It would be essential for Best Buy Co. Inc to scrutinize its operational efficiency, cost management, and revenue generation strategies to improve its ROA and ensure optimal utilization of its assets in the future.