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Best Buy Co (FRA:BUY) 5-Year RORE % : -2.43% (As of Oct. 2024)


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What is Best Buy Co 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Best Buy Co's 5-Year RORE % for the quarter that ended in Oct. 2024 was -2.43%.

The industry rank for Best Buy Co's 5-Year RORE % or its related term are showing as below:

FRA:BUY's 5-Year RORE % is ranked worse than
60.72% of 919 companies
in the Retail - Cyclical industry
Industry Median: 7.66 vs FRA:BUY: -2.43

Best Buy Co 5-Year RORE % Historical Data

The historical data trend for Best Buy Co's 5-Year RORE % 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 5-Year RORE % Chart

Best Buy Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.04 15.44 30.69 7.77 0.08

Best Buy Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.82 0.08 2.09 -0.96 -2.43

Competitive Comparison of Best Buy Co's 5-Year RORE %

For the Specialty Retail subindustry, Best Buy Co's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Best Buy Co's 5-Year RORE % falls into.



Best Buy Co 5-Year RORE % Calculation

Best Buy Co's 5-Year RORE % for the quarter that ended in Oct. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 5.391-5.813 )/( 31.484-14.137 )
=-0.422/17.347
=-2.43 %

* 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.

In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Oct. 2024 and 5-year before.


Best Buy Co  (FRA:BUY) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Best Buy Co 5-Year RORE % Related Terms

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Best Buy Co Business Description

Traded in Other Exchanges
Address
7601 Penn Avenue South, Richfield, MN, USA, 55423
With $43.5 billion in consolidated 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the US, boasting roughly 8.3% share of the North American market and north of 33% share of offline sales in the region, 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 US e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

Best Buy Co Headlines

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