Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Best Buy Co. Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Best Buy Co. Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Best Buy Co. Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Best Buy Co. Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Best Buy Co. Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Best Buy Co. Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Gross Profit Margin
Best Buy Co. Inc., gross profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 11,640) | 10,573) | 10,048) | 9,961) | 9,876) | 9,440) | |
| Revenue | 51,761) | 47,262) | 43,638) | 42,879) | 42,151) | 39,403) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 22.49% | 22.37% | 23.03% | 23.23% | 23.43% | 23.96% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 43.81% | 42.03% | 39.57% | 40.99% | — | — | |
| Home Depot Inc. | 33.63% | 33.95% | 34.09% | 34.34% | — | — | |
| Lowe’s Cos. Inc. | 33.30% | 33.01% | 31.80% | 32.12% | — | — | |
| TJX Cos. Inc. | 28.50% | 23.66% | 28.46% | 28.59% | — | — | |
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).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 11,640 ÷ 51,761 = 22.49%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Best Buy Co. Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Operating Profit Margin
Best Buy Co. Inc., operating profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 3,039) | 2,391) | 2,009) | 1,900) | 1,843) | 1,854) | |
| Revenue | 51,761) | 47,262) | 43,638) | 42,879) | 42,151) | 39,403) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.87% | 5.06% | 4.60% | 4.43% | 4.37% | 4.71% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 2.38% | 5.30% | 5.93% | 5.18% | — | — | |
| Home Depot Inc. | 15.24% | 13.84% | 14.37% | 14.35% | — | — | |
| Lowe’s Cos. Inc. | 12.56% | 10.77% | 8.75% | 5.63% | — | — | |
| TJX Cos. Inc. | 9.79% | 1.81% | 10.59% | 10.82% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.44% | 7.38% | 8.11% | 7.68% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 8.47% | 8.79% | 6.48% | 7.63% | — | — | |
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).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 3,039 ÷ 51,761 = 5.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Best Buy Co. Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Best Buy Co. Inc., net profit margin calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 2,454) | 1,798) | 1,541) | 1,464) | 1,000) | 1,228) | |
| Revenue | 51,761) | 47,262) | 43,638) | 42,879) | 42,151) | 39,403) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 4.74% | 3.80% | 3.53% | 3.41% | 2.37% | 3.12% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | -0.53% | 7.10% | 5.53% | 4.13% | — | — | |
| Home Depot Inc. | 10.87% | 9.74% | 10.20% | 10.28% | — | — | |
| Lowe’s Cos. Inc. | 8.77% | 6.51% | 5.93% | 3.25% | — | — | |
| TJX Cos. Inc. | 6.76% | 0.28% | 7.84% | 7.85% | — | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.14% | 7.21% | 6.58% | 5.63% | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 5.15% | 9.20% | 5.24% | 5.92% | — | — | |
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).
1 2022 Calculation
Net profit margin = 100 × Net earnings ÷ Revenue
= 100 × 2,454 ÷ 51,761 = 4.74%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Best Buy Co. Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Best Buy Co. Inc., ROE calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 2,454) | 1,798) | 1,541) | 1,464) | 1,000) | 1,228) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Profitability Ratio | |||||||
| ROE1 | 81.26% | 39.20% | 44.29% | 44.28% | 27.69% | 26.08% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | -1.86% | 24.13% | 22.84% | 18.67% | — | — | |
| Home Depot Inc. | — | 390.00% | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 406.05% | 217.09% | 63.50% | — | — | |
| TJX Cos. Inc. | 54.69% | 1.55% | 55.01% | 60.61% | — | — | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 17.48% | 35.05% | 40.86% | 40.77% | — | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 21.65% | 34.37% | 25.29% | 34.62% | — | — | |
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).
1 2022 Calculation
ROE = 100 × Net earnings ÷ Total Best Buy Co., Inc. shareholders’ equity
= 100 × 2,454 ÷ 3,020 = 81.26%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Best Buy Co. Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Best Buy Co. Inc., ROA calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 2,454) | 1,798) | 1,541) | 1,464) | 1,000) | 1,228) | |
| Total assets | 17,504) | 19,067) | 15,591) | 12,901) | 13,049) | 13,856) | |
| Profitability Ratio | |||||||
| ROA1 | 14.02% | 9.43% | 9.88% | 11.35% | 7.66% | 8.86% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | -0.59% | 7.93% | 6.64% | 5.14% | — | — | |
| Home Depot Inc. | 22.86% | 18.23% | 21.94% | 25.27% | — | — | |
| Lowe’s Cos. Inc. | 18.91% | 12.49% | 10.85% | 6.71% | — | — | |
| TJX Cos. Inc. | 11.53% | 0.29% | 13.55% | 21.36% | — | — | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.19% | 9.17% | 9.20% | 8.83% | — | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 4.94% | 8.07% | 4.42% | 5.57% | — | — | |
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).
1 2022 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 2,454 ÷ 17,504 = 14.02%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Best Buy Co. Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |