Best Buy Co. Inc (BBY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 2,057,000 | 2,068,000 | 2,008,000 | 2,033,000 |
| Long-term debt | US$ in thousands | 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 | 1,257,000 | 1,239,000 | 1,247,000 | 1,193,000 |
| 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 |
| Return on total capital | 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% | 43.43% | 47.39% | 44.31% | 44.71% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,674,000K ÷ ($1,152,000K + $3,053,000K)
= 39.81%
The return on total capital for Best Buy Co. Inc has shown a fluctuating trend over the past few periods, ranging from 39.81% to 72.07%. The return on total capital peaked at 72.07% in April 2022 and has remained relatively high since then. This indicates that the company has been effective in generating returns from its total capital investment.
Overall, Best Buy Co. Inc has maintained a strong performance in utilizing its total capital to generate profits during the periods under review. It is crucial for investors and stakeholders to monitor this ratio continuously to assess the company's ability to generate returns on the capital employed in its operations.