Best Buy Co (BSP:BBYY34) Inventory Turnover : 1.83 (As of Jan. 2024)

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What is Best Buy Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Best Buy Co's Cost of Goods Sold for the three months ended in Jan. 2024 was R$57,272 Mil. Best Buy Co's Average Total Inventories for the quarter that ended in Jan. 2024 was R$31,309 Mil. Best Buy Co's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Best Buy Co's Days Inventory for the three months ended in Jan. 2024 was 49.88.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Best Buy Co's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.43.

Best Buy Co Inventory Turnover Historical Data

The historical data trend for Best Buy Co's Inventory 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.

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Best Buy Co Inventory Turnover Chart

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Inventory Turnover

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6.69

7.63

7.03

6.33

6.52

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
Inventory Turnover	Get a 7-Day Free Trial															1.88	1.39	1.33	1.16	1.83

Best Buy Co Inventory Turnover Calculation

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

	Inventory Turnover (A: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2024 )	/ (	(Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )
=	166476.151	/ (	(26687.908	+	24384.436)	/	2 )
=	166476.151	/	25536.172
=	6.52

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

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	57272.439	/ (	(38232.716	+	24384.436)	/	2 )
=	57272.439	/	31308.576
=	1.83

Best Buy Co (BSP:BBYY34) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Best Buy Co's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	31308.576	/	57272.439	*	365 / 4
	=	49.88

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Best Buy Co's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	31308.576	/	72031.957
	=	0.43

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Best Buy Co Inventory Turnover Related Terms

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Best Buy Co (BSP:BBYY34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (BSP:BBYY34) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

BBY:USA BBY:Mexico BUY:Germany

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.

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