Return on Assets (ROA)
since 2005
Calculation
Best Buy Co. Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 14.02% | = | 100 | × | 2,454) | ÷ | 17,504) |
| Jan 30, 2021 | 9.43% | = | 100 | × | 1,798) | ÷ | 19,067) |
| Feb 1, 2020 | 9.88% | = | 100 | × | 1,541) | ÷ | 15,591) |
| Feb 2, 2019 | 11.35% | = | 100 | × | 1,464) | ÷ | 12,901) |
| Feb 3, 2018 | 7.66% | = | 100 | × | 1,000) | ÷ | 13,049) |
| Jan 28, 2017 | 8.86% | = | 100 | × | 1,228) | ÷ | 13,856) |
| Jan 30, 2016 | 6.64% | = | 100 | × | 897) | ÷ | 13,519) |
| Jan 31, 2015 | 8.08% | = | 100 | × | 1,233) | ÷ | 15,256) |
| Feb 1, 2014 | 3.80% | = | 100 | × | 532) | ÷ | 14,013) |
| Feb 2, 2013 | -2.63% | = | 100 | × | (441) | ÷ | 16,787) |
| Mar 3, 2012 | -7.69% | = | 100 | × | (1,231) | ÷ | 16,005) |
| Feb 26, 2011 | 7.15% | = | 100 | × | 1,277) | ÷ | 17,849) |
| Feb 27, 2010 | 7.20% | = | 100 | × | 1,317) | ÷ | 18,302) |
| Feb 28, 2009 | 6.34% | = | 100 | × | 1,003) | ÷ | 15,826) |
| Mar 1, 2008 | 11.03% | = | 100 | × | 1,407) | ÷ | 12,758) |
| Mar 3, 2007 | 10.15% | = | 100 | × | 1,377) | ÷ | 13,570) |
| Feb 25, 2006 | 9.61% | = | 100 | × | 1,140) | ÷ | 11,864) |
| Feb 26, 2005 | 9.56% | = | 100 | × | 984) | ÷ | 10,294) |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
1 US$ in millions
The analysis of return on assets (ROA) from 2005 to 2022 reveals three distinct operational phases: an initial period of growth and expansion, a period of severe financial volatility, and a subsequent recovery leading to peak asset efficiency.
- Initial Growth and Asset Expansion (2005–2011)
- Between 2005 and 2008, ROA exhibited a steady upward trend, rising from 9.56% to 11.03%. Although a contraction occurred in 2009 where ROA dropped to 6.34%, the metric stabilized between 7.15% and 7.20% by 2011. This period was characterized by aggressive growth in the asset base, which increased from 10,294 million USD in 2005 to a peak of 18,302 million USD in 2010.
- Financial Volatility and Net Losses (2012–2013)
- A significant downturn occurred between 2012 and 2013, with net earnings falling into negative territory. The company recorded losses of 1,231 million USD and 441 million USD in those respective years, leading to negative ROA values of -7.69% and -2.63%. This represents the most critical period of underperformance in the observed timeframe.
- Recovery and Asset Rationalization (2014–2017)
- A recovery phase began in 2014, as net earnings returned to a positive 532 million USD, bringing ROA to 3.80%. ROA continued to improve, reaching 8.86% in 2016. This recovery coincided with a reduction in total assets, which declined from 16,787 million USD in 2013 to 13,049 million USD by 2017, suggesting a strategic shift toward a leaner asset structure to improve efficiency.
- Peak Profitability and Operational Efficiency (2018–2022)
- The final period is marked by substantial growth in profitability. ROA rose to 11.35% in 2019 and reached a historical peak of 14.02% in 2022. This peak was supported by a significant surge in net earnings, which grew from 1,000 million USD in 2017 to 2,454 million USD in 2022, while total assets were maintained at 17,504 million USD.
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Comparison to Competitors
Best Buy Co. Inc., ROA, long-term trends, comparison to competitors
| Best Buy Co. Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 29, 2022 | 14.02% | -0.59% | 22.86% | 18.91% | 11.53% |
| Jan 30, 2021 | 9.43% | 7.93% | 18.23% | 12.49% | 0.29% |
| Feb 1, 2020 | 9.88% | 6.64% | 21.94% | 10.85% | 13.55% |
| Feb 2, 2019 | 11.35% | 5.14% | 25.27% | 6.71% | 21.36% |
| Feb 3, 2018 | 7.66% | 6.19% | 19.38% | 9.77% | 18.55% |
| Jan 28, 2017 | 8.86% | 2.31% | 18.52% | 8.99% | 17.84% |
| Jan 30, 2016 | 6.64% | 2.84% | 16.47% | 8.14% | 19.81% |
| Jan 31, 2015 | 8.08% | 0.91% | 15.88% | 8.48% | 19.91% |
| Feb 1, 2014 | 3.80% | -0.44% | 13.29% | 6.98% | 20.95% |
| Feb 2, 2013 | -2.63% | 0.68% | 11.04% | 6.00% | 20.05% |
| Mar 3, 2012 | -7.69% | -0.12% | 9.58% | 5.48% | 18.07% |
| Feb 26, 2011 | 7.15% | 2.50% | 8.32% | 5.96% | 16.85% |
| Feb 27, 2010 | 7.20% | 6.13% | 6.51% | 5.40% | 16.26% |
| Feb 28, 2009 | 6.34% | 6.53% | 5.49% | 6.72% | 14.25% |
| Mar 1, 2008 | 11.03% | 7.76% | 9.92% | 9.10% | 11.69% |
| Mar 3, 2007 | 10.15% | 7.34% | 11.02% | 11.18% | 12.13% |
| Feb 25, 2006 | 9.61% | 4.35% | 13.12% | 11.23% | 12.56% |
| Feb 26, 2005 | 9.56% | 9.71% | 12.85% | 10.26% | 13.09% |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Best Buy Co. Inc., ROA, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 14.02% | 4.19% |
| Jan 30, 2021 | 9.43% | 9.17% |
| Feb 1, 2020 | 9.88% | 9.20% |
| Feb 2, 2019 | 11.35% | 8.83% |
| Feb 3, 2018 | 7.66% | 9.65% |
| Jan 28, 2017 | 8.86% | 7.39% |
| Jan 30, 2016 | 6.64% | 8.42% |
| Jan 31, 2015 | 8.08% | 7.99% |
| Feb 1, 2014 | 3.80% | 6.94% |
| Feb 2, 2013 | -2.63% | 7.03% |
| Mar 3, 2012 | -7.69% | 6.25% |
| Feb 26, 2011 | 7.15% | 6.84% |
| Feb 27, 2010 | 7.20% | 6.80% |
| Feb 28, 2009 | 6.34% | 6.65% |
| Mar 1, 2008 | 11.03% | 9.57% |
| Mar 3, 2007 | 10.15% | 10.89% |
| Feb 25, 2006 | 9.61% | 12.01% |
| Feb 26, 2005 | 9.56% | 11.90% |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Industry (Consumer Discretionary)
Best Buy Co. Inc., ROA, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 29, 2022 | 14.02% | 4.81% |
| Jan 30, 2021 | 9.43% | 7.99% |
| Feb 1, 2020 | 9.88% | 4.36% |
| Feb 2, 2019 | 11.35% | 5.57% |
| Feb 3, 2018 | 7.66% | 5.96% |
| Jan 28, 2017 | 8.86% | 4.05% |
| Jan 30, 2016 | 6.64% | 5.57% |
| Jan 31, 2015 | 8.08% | 6.25% |
| Feb 1, 2014 | 3.80% | 4.75% |
| Feb 2, 2013 | -2.63% | 5.52% |
| Mar 3, 2012 | -7.69% | 5.65% |
| Feb 26, 2011 | 7.15% | 9.48% |
| Feb 27, 2010 | 7.20% | 6.05% |
| Feb 28, 2009 | 6.34% | 4.67% |
| Mar 1, 2008 | 11.03% | 0.21% |
| Mar 3, 2007 | 10.15% | 2.85% |
| Feb 25, 2006 | 9.61% | 0.60% |
| Feb 26, 2005 | 9.56% | 3.80% |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).