Best Buy Co. Inc (BBY)
Return on total capital
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,350,000 | 1,674,000 | 1,824,000 | 3,053,000 | 2,429,000 |
| Long-term debt | US$ in thousands | 1,144,000 | 1,152,000 | 1,160,000 | 1,216,000 | 1,253,000 |
| Total stockholders’ equity | US$ in thousands | 2,808,000 | 3,053,000 | 2,795,000 | 3,020,000 | 4,587,000 |
| Return on total capital | 34.16% | 39.81% | 46.12% | 72.07% | 41.59% |
February 1, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,350,000K ÷ ($1,144,000K + $2,808,000K)
= 34.16%
Best Buy Co. Inc's return on total capital has shown fluctuations over the past few years. In January 2021, the return on total capital was 41.59%, which increased significantly to 72.07% by January 2022. However, the return decreased to 46.12% by January 2023, followed by a further decline to 39.81% in February 2024. Most recently, in February 2025, the return on total capital stood at 34.16%.
These fluctuations indicate that Best Buy Co. Inc's efficiency in generating returns from its total capital has varied over the years. It is essential for the company to monitor and manage the allocation of its capital effectively to sustain or improve its return on total capital in the future.