Best Buy Co (Best Buy Co) Asset Turnover

: 0.92 (As of Jan. 2024)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Best Buy Co's Revenue for the three months ended in Jan. 2024 was $14,646 Mil. Best Buy Co's Total Assets for the quarter that ended in Jan. 2024 was $15,925 Mil. Therefore, Best Buy Co's Asset Turnover for the quarter that ended in Jan. 2024 was 0.92.

Asset Turnover is linked to ROE % through Du Pont Formula. Best Buy Co's annualized ROE % for the quarter that ended in Jan. 2024 was 62.75%. It is also linked to ROA % through Du Pont Formula. Best Buy Co's annualized ROA % for the quarter that ended in Jan. 2024 was 11.55%.

Best Buy Co Asset Turnover Historical Data

The historical data trend for Best Buy Co's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Asset Turnover

3.06

2.73

2.83

2.78

2.82

Best Buy Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Asset Turnover																0.90	0.62	0.64	0.61	0.92

Competitive Comparison

For the Specialty Retail subindustry, Best Buy Co's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Best Buy Co Asset Turnover Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Best Buy Co's Asset Turnover falls into.

Best Buy Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Best Buy Co's Asset Turnover for the fiscal year that ended in Jan. 2024 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Jan. 2024 )	/	( (Total Assets (A: Jan. 2023 )	+	Total Assets (A: Jan. 2024 ))	/ count )
=	43452	/	( (15803	+	14967)	/ 2 )
=	43452	/	15385
=	2.82

Best Buy Co's Asset Turnover for the quarter that ended in Jan. 2024 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jan. 2024 )	/	( (Total Assets (Q: Oct. 2023 )	+	Total Assets (Q: Jan. 2024 ))	/ count )
=	14646	/	( (16882	+	14967)	/ 2 )
=	14646	/	15924.5
=	0.92

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Best Buy Co (NYSE:BBY) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Best Buy Co's annulized ROE % for the quarter that ended in Jan. 2024 is

	ROE %^**		(Q: Jan. 2024 )
=	Net Income	/	Total Stockholders Equity
=	1840	/	2932.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(1840 / 58584)	*	(58584 / 15924.5)	*	(15924.5/ 2932.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	3.14 %	*	3.6789	*	5.4303
=	ROA %	*	Equity Multiplier
=	11.55 %	*	5.4303
=	62.75 %

Note: The Net Income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Best Buy Co's annulized ROA % for the quarter that ended in Jan. 2024 is

	ROA %		(Q: Jan. 2024 )
=	Net Income	/	Total Assets
=	1840	/	15924.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(1840 / 58584)	*	(58584 / 15924.5)
=	Net Margin %	*	Asset Turnover
=	3.14 %	*	3.6789
=	11.55 %

Note: The Net Income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Best Buy Co Asset Turnover Related Terms

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Best Buy Co (Best Buy Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (NYSE:BBY) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

BBY:Mexico BUY:Germany BUY:Germany BBYY34:Brazil

Address

7601 Penn Avenue South, Richfield, MN, USA, 55423

Website

https://www.investors.bestbuy.com

With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

Executives

Richard M Schulze	10 percent owner	BEST BUY CO INC, 7075 FLYING CLOUD DRIVE, EDEN PRAIRIE MN 55344
Todd G. Hartman	officer: GC, Chief Risk/Comp Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
David C Kimbell	director	8410 W. BRYN MAWR, CHICAGO IL 60631
Kathleen Scarlett	officer: Chief Human Resources Officer	7601 PENN AVE S, RICHFIELD MN 55423
Jason J Bonfig	officer: Chief Merchandising Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Matthew M Bilunas	officer: Chief Financial Officer	C/O BEST BUY CO., INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Barry Corie S	officer: CFO	7601 PENN AVE S., RICHFIELD MN 55423
Mathew Watson	officer: VP, Finance - Contr. & CAO	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Damien Harmon	officer: Pres., Omnichannel Ops & Serv	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Sima Sistani	director	675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010
Melinda D Whittington	director	THREE LAKES DRIVE, NORTHFIELD IL 60093
Deborah Disanzo	officer: President, Best Buy Health	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Allison Peterson	officer: Chief Customer Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Brian A Tilzer	officer: Chief Digital & Tech Officer	CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Mark A Irvin	officer: Chief Supply Chain Officer	7601 PENN AVENUE, RICHFIELD MN 55423