Best Buy Co. Inc (BBY)
Return on assets (ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,241,000 | 1,419,000 | 2,454,000 | 1,798,000 | 1,541,000 |
| Total assets | US$ in thousands | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 | 15,591,000 |
| ROA | 8.29% | 8.98% | 14.02% | 9.43% | 9.88% |
February 3, 2024 calculation
ROA = Net income ÷ Total assets
= $1,241,000K ÷ $14,967,000K
= 8.29%
ROA measures how efficiently a company is using its assets to generate profits. Best Buy's ROA has fluctuated over the past five years, ranging from 8.29% to 14.02%. In 2022, Best Buy achieved the highest ROA of 14.02%, indicating strong asset utilization and profitability. However, in 2024, the ROA decreased to 8.29%, reflecting a potential decline in asset efficiency. Overall, Best Buy has maintained a relatively stable ROA, demonstrating consistent performance in generating earnings relative to its assets. It would be beneficial for investors and analysts to further investigate the factors influencing these fluctuations in ROA to assess the company's operational effectiveness and potential future performance.