Best Buy Co. Inc (BBY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,350,000 | 1,712,000 | 1,704,000 | 1,681,000 | 1,674,000 | 1,701,000 | 1,709,000 | 1,698,000 | 1,824,000 | 2,003,000 | 2,304,000 | 2,737,000 | 3,053,000 | 3,301,000 | 3,195,000 | 2,967,000 | 2,429,000 | 2,358,000 | 2,197,000 | 1,944,000 |
| Long-term debt | US$ in thousands | 1,144,000 | 1,144,000 | 1,157,000 | 1,134,000 | 1,152,000 | 1,130,000 | 1,145,000 | 1,155,000 | 1,160,000 | 1,142,000 | 1,184,000 | 1,170,000 | 1,216,000 | 1,223,000 | 1,243,000 | 1,229,000 | 1,253,000 | 1,256,000 | 632,000 | 621,000 |
| 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 |
| Return on total capital | 34.16% | 40.51% | 39.96% | 39.87% | 39.81% | 43.15% | 42.94% | 43.01% | 46.12% | 48.44% | 56.53% | 69.52% | 72.07% | 60.01% | 57.28% | 55.08% | 41.59% | 44.14% | 49.82% | 48.23% |
February 1, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,350,000K ÷ ($1,144,000K + $2,808,000K)
= 34.16%
The return on total capital of Best Buy Co. Inc has displayed fluctuations over the past few years based on the provided data. The ratio stood at 48.23% as of May 2, 2020, increased to 49.82% by August 1, 2020, and then slightly declined to 44.14% by October 31, 2020. Over the subsequent periods, the return on total capital fluctuated but generally showed an increasing trend until reaching a peak of 72.07% on January 29, 2022.
However, the ratio began to decrease after that peak, dipping to 39.81% as of February 3, 2024. The return on total capital remained relatively stable around this level until the most recent data point on February 1, 2025, where it stood at 34.16%. Overall, the company experienced periods of both growth and contraction in terms of its return on total capital, indicating changes in the efficiency and profitability of utilizing capital resources within the business.