Best Buy Co. Inc (BBY)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,241,000 | 1,276,000 | 1,290,000 | 1,322,000 | 1,419,000 | 1,550,000 | 1,772,000 | 2,200,000 | 2,454,000 | 2,644,000 | 2,536,000 | 2,234,000 | 1,798,000 | 1,727,000 | 1,629,000 | 1,435,000 | 1,541,000 | 1,531,000 | 1,515,000 | 1,521,000 |
| Total stockholders’ equity | US$ in thousands | 3,053,000 | 2,812,000 | 2,835,000 | 2,793,000 | 2,795,000 | 2,993,000 | 2,892,000 | 2,767,000 | 3,020,000 | 4,278,000 | 4,335,000 | 4,158,000 | 4,587,000 | 4,086,000 | 3,778,000 | 3,410,000 | 3,479,000 | 3,125,000 | 3,285,000 | 3,354,000 |
| ROE | 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% | 44.29% | 48.99% | 46.12% | 45.35% |
February 3, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,241,000K ÷ $3,053,000K
= 40.65%
Best Buy Co. Inc's return on equity (ROE) has exhibited fluctuating trends over the past several quarters. The ROE ranged from a low of 39.20% on Jan 30, 2021, to a high of 81.26% on Jan 29, 2022. The upward momentum in ROE from the first quarter of 2021 to the first quarter of 2022 indicates an improvement in profitability and efficiency in generating returns for shareholders.
However, the ROE decreased in the most recent quarter to 40.65% on Feb 3, 2024, which might be a cause of concern for investors. It is essential to investigate the factors driving this decline to assess the company's financial performance accurately.
Overall, Best Buy Co. Inc's ROE performance reflects a mix of strengths and challenges, highlighting the need for a comprehensive analysis of the company's operations, financial management, and strategic decisions to determine the sustainability and long-term growth prospects of the business.