Best Buy Co (BSP:BBYY34) ROCE % : 33.88% (As of Jan. 2024)

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What is Best Buy Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Best Buy Co's annualized ROCE % for the quarter that ended in Jan. 2024 was 33.88%.

Best Buy Co ROCE % Historical Data

The historical data trend for Best Buy Co's ROCE % 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 ROCE % Chart

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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33.23

33.80

40.32

25.86

23.46

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
ROCE %	Get a 7-Day Free Trial															36.24	19.20	21.81	21.60	33.88

Best Buy Co ROCE % Calculation

Best Buy Co's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	8228.149	/	( ( (82052.337 - 46620.764)	+	(73610.699 - 38898.044) )	/ 2 )
	=	8228.149	/	( (35431.573	+	34712.655)	/ 2 )
	=	8228.149	/	35072.114
	=	23.46 %

Best Buy Co's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	11764.336	/	( ( (85353.704 - 50609.559)	+	(73610.699 - 38898.044) )	/ 2 )
	=	11764.336	/	( ( 34744.145	+	34712.655 )	/ 2 )
	=	11764.336	/	34728.4
	=	33.88 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Best Buy Co (BSP:BBYY34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Best Buy Co ROCE % 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 » ROCE %

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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