Best Buy Co. Inc (BBY)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 927,000 | 1,270,000 | 1,260,000 | 1,243,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,808,000 | 3,082,000 | 3,107,000 | 3,082,000 | 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 |
| 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% |
February 1, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $927,000K ÷ $2,808,000K
= 33.01%
Best Buy Co. Inc's return on equity (ROE) has shown fluctuations over the periods provided. The ROE increased from 42.08% in May 2, 2020, to a peak of 81.26% in January 29, 2022, reflecting strong profitability relative to shareholders' equity. However, the ROE declined thereafter, reaching 33.01% by February 1, 2025.
Overall, the company has demonstrated the ability to generate returns for shareholders above industry averages during most of the periods analyzed. It is important to further investigate the factors contributing to the fluctuations in ROE to assess the company's efficiency in utilizing equity to generate profits and create value for shareholders.