3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Best Buy Co's 3-Year ROIIC % for the quarter that ended in Jan. 2024 was -198.11%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Best Buy Co's 3-Year ROIIC % or its related term are showing as below:
BBY's 3-Year ROIIC % is ranked worse than 95.4% of 1065
companies
in the Retail - Cyclical industry
Industry Median: 3.06
vs BBY: -198.11
Best Buy Co 3-Year ROIIC % Historical Data
The historical data trend for Best Buy Co's 3-Year ROIIC % 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.
Competitive Comparison of Best Buy Co's 3-Year ROIIC %
For the Specialty Retail subindustry, Best Buy Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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's 3-Year ROIIC % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Best Buy Co's 3-Year ROIIC % falls into.
Best Buy Co 3-Year ROIIC % Calculation
Best Buy Co's 3-Year ROIIC % for the quarter that ended in Jan. 2024 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1321.155 (Jan. 2024) - 2000.678 (Jan. 2021) )
/
( 9440 (Jan. 2024) - 9097 (Jan. 2021) )
=
-679.523
/
343
=
-198.11%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Best Buy Co (NYSE:BBY) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Best Buy Co 3-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Best Buy Co's 3-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
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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