Best Buy Co. Inc (BBY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,053,000 | 2,795,000 | 3,020,000 | 4,587,000 | 3,479,000 |
| ROE | 40.65% | 50.77% | 81.26% | 39.20% | 44.29% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,241,000K ÷ $3,053,000K
= 40.65%
Best Buy Co. Inc's return on equity (ROE) has fluctuated over the past five years. The ROE stood at 40.65% as of Feb 3, 2024, a decrease from the previous year's ROE of 50.77% as of Jan 28, 2023. This downward trend follows a notable decrease from the peak ROE of 81.26% observed on Jan 29, 2022. The ROE of 39.20% on Jan 30, 2021, was followed by an increase to 44.29% on Feb 1, 2020.
The variations in ROE suggest changes in how effectively Best Buy is utilizing its shareholders' equity to generate profits. Despite the recent decrease in ROE, it is important to conduct a thorough analysis of the company's financial performance, profitability, and asset management to understand the factors contributing to these fluctuations in ROE. Further investigation and context are required to evaluate the sustainability and implications of Best Buy's ROE trends over the years.