Analysis of Reportable Segments
Best Buy Co. Inc. operates in 2 segments: Domestic and International.
Segment Profit Margin
Best Buy Co. Inc., profit margin by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 5.84% | 5.42% | 4.75% | 4.57% | 4.53% | 4.87% |
| International | 6.21% | 1.08% | 2.89% | 2.88% | 2.61% | 2.85% |
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).
- Domestic Segment Profit Margin
- The domestic segment profit margin showed a generally upward trend over the six-year period. Starting at 4.87% in January 2017, it experienced a slight decline reaching 4.53% in February 2018 before increasing to 4.57% in February 2019. Thereafter, the margin continued to rise steadily, reaching 4.75% in February 2020, then accelerating further to 5.42% in January 2021 and 5.84% in January 2022. This suggests improving profitability in the domestic market, with consistent growth particularly notable from 2020 onward.
- International Segment Profit Margin
- The international segment profit margin exhibited more volatility compared to the domestic segment. Beginning at 2.85% in January 2017, it declined to 2.61% in February 2018, followed by a moderate recovery to 2.88% in February 2019 and a slight increase to 2.89% in February 2020. A significant drop occurred in January 2021, where the margin plummeted to 1.08%, indicating a severe decrease in profitability or potential operational challenges during that period. Notably, there was a strong rebound in January 2022, with the margin surging to 6.21%, the highest level recorded in the timeframe. This marked recovery may reflect successful strategic adjustments or improved market conditions internationally.
- Comparative Analysis
- Domestic profit margins consistently remained higher than international margins for the majority of the period, except in the final year where the international margin surpassed the domestic. The sharp fluctuations in the international segment contrast with the relatively stable and improving domestic segment, highlighting differing operational or market dynamics. The notable rebound in the international margin in the latest period is a key highlight, demonstrating recovery and potential growth opportunities in that market.
Segment Profit Margin: Domestic
Best Buy Co. Inc.; Domestic; segment profit margin calculation
| 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 | 2,795) | 2,348) | 1,907) | 1,797) | 1,752) | 1,764) |
| Revenue | 47,830) | 43,293) | 40,114) | 39,304) | 38,662) | 36,248) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 5.84% | 5.42% | 4.75% | 4.57% | 4.53% | 4.87% |
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
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 2,795 ÷ 47,830 = 5.84%
The annual financial performance of the Domestic reportable segment reveals several noteworthy trends over the analyzed periods.
- Operating Income
- Operating income exhibited a steady upward trajectory across the periods, rising from $1,764 million in early 2017 to $2,795 million by early 2022. This growth indicates an improvement in the segment's profitability and operational efficiency over the years. The increase between 2020 and 2022 was particularly pronounced, suggesting stronger performance or effective cost management during this period.
- Revenue
- Revenue consistently increased each year from $36,248 million in 2017 to $47,830 million in 2022. This positive trend reflects a growing sales base or expanding market share within the domestic segment. The growth rate appears to accelerate slightly in the later years, particularly between 2020 and 2022, which may point to enhanced business activities or favorable market conditions.
- Segment Profit Margin
- The segment profit margin percentage demonstrated a general upward trend over the observed years. Starting at 4.87% in 2017, there was a slight dip in 2018 and 2019, followed by a consistent increase from 4.75% in 2020 to 5.84% in 2022. This progression indicates improving profitability at the segment level relative to revenue, suggesting enhanced operational leverage, better cost control, or higher-margin revenue streams influencing the overall margin.
In summary, the domestic segment showcased continuous growth in revenue and operating income, accompanied by an improving profit margin. These indicators collectively suggest strengthening financial performance and operational effectiveness in the domestic market over the reviewed time frame.
Segment Profit Margin: International
Best Buy Co. Inc.; International; segment profit margin calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 244) | 43) | 102) | 103) | 91) | 90) |
| Revenue | 3,931) | 3,969) | 3,524) | 3,575) | 3,489) | 3,155) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 6.21% | 1.08% | 2.89% | 2.88% | 2.61% | 2.85% |
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
Segment profit margin = 100 × Operating income ÷ Revenue
= 100 × 244 ÷ 3,931 = 6.21%
The financial data over the six-year period reflects several notable trends concerning the international segment's performance.
- Revenue
- Revenue showed a steady increase from 2017 through 2019, rising from 3,155 million US dollars to 3,575 million US dollars. A slight decrease occurred in 2020 to 3,524 million US dollars, followed by a significant increase in 2021 to 3,969 million US dollars. Revenue slightly declined in 2022 to 3,931 million US dollars, which nonetheless remains higher than all previous years except 2021.
- Operating Income
- Operating income remained relatively stable from 2017 to 2020, fluctuating narrowly between 90 and 103 million US dollars. However, a sharp decline is observed in 2021, dropping to 43 million US dollars. The following year, 2022, shows a remarkable rebound with operating income rising substantially to 244 million US dollars, exceeding all prior years by a significant margin.
- Segment Profit Margin
- The segment profit margin mirrored the stability seen in operating income from 2017 to 2020, maintaining a range between approximately 2.6% and 2.9%. In 2021, there was a considerable decline to just over 1%, indicating reduced profitability despite increased revenue. A major recovery occurred in 2022, with the profit margin soaring to 6.21%, suggesting improved operational efficiency or cost management contributing to a much higher margin.
Overall, while revenue growth was generally positive, the segment experienced volatility in profitability, especially in 2021 when profit margins and operating income sharply declined despite growing revenue. The significant recovery in 2022 suggests corrective measures or favorable conditions led to enhanced profitability and operational performance.
Segment Return on Assets (Segment ROA)
Best Buy Co. Inc., ROA by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 17.45% | 13.32% | 13.39% | 15.09% | 15.16% | 14.12% |
| International | 16.40% | 2.98% | 7.59% | 10.37% | 6.08% | 6.62% |
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).
- Domestic Segment ROA
- The domestic segment's return on assets (ROA) showed moderate fluctuations over the observed periods. Initially, there was a gradual increase from 14.12% in early 2017 to a peak of 15.16% in early 2018. This was followed by a slight decline to 15.09% in 2019. Subsequently, the ROA decreased more noticeably to 13.39% in 2020 and remained relatively stable in 2021 at 13.32%. However, in the latest period ending in early 2022, the domestic ROA experienced a significant increase, rising sharply to 17.45%, representing the highest recorded value in the given timeframe.
- International Segment ROA
- The international segment exhibited a more volatile ROA profile. Starting at 6.62% in early 2017, it slightly declined to 6.08% in 2018, followed by a robust increase to 10.37% in 2019. After this peak, a downward trend is observed with ROA falling to 7.59% in 2020 and then sharply declining to a low of 2.98% in 2021. Remarkably, the latest data for early 2022 shows a substantial recovery to 16.40%, which not only surpasses all prior periods but also converges closely with the domestic segment's ROA for the same period.
- Overall Trends and Insights
- Both segments demonstrated improved asset profitability in the latest period ending in early 2022. The domestic segment’s ROA recovered strongly after several years of relative decline, achieving the highest level in the six-year timeline. The international segment’s ROA revealed greater volatility but ultimately showed an even more pronounced rebound in 2022, moving from a trough in 2021 to a value comparable to the domestic segment’s performance. This suggests a possible strategic turnaround or improved operational efficiency internationally. The earlier years reflect differing cyclical performance patterns between the segments, with the international segment generally showing lower and more fluctuating ROA compared to the more stable domestic segment until the most recent period.
Segment ROA: Domestic
Best Buy Co. Inc.; Domestic; segment ROA calculation
| 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 | 2,795) | 2,348) | 1,907) | 1,797) | 1,752) | 1,764) |
| Assets | 16,016) | 17,625) | 14,247) | 11,908) | 11,553) | 12,496) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 17.45% | 13.32% | 13.39% | 15.09% | 15.16% | 14.12% |
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
Segment ROA = 100 × Operating income ÷ Assets
= 100 × 2,795 ÷ 16,016 = 17.45%
The data reveals notable trends in the financial performance and asset base of the domestic segment over the six-year period ending in early 2022.
- Operating Income
- Operating income demonstrates a consistent upward trajectory throughout the period. Beginning at 1,764 million US dollars in early 2017, it remains relatively stable through 2018 and 2019, with slight increases each year. From 2020 onwards, the operating income grows more significantly, reaching 2,348 million in early 2021 and culminating at 2,795 million in early 2022. This indicates improving operational profitability within the segment over time.
- Assets
- The asset base shows more variability during the same period. Starting at 12,496 million US dollars in early 2017, assets decline slightly to 11,553 million by early 2018 but then experience incremental increases reaching 14,247 million in 2020. There is a marked increase to 17,625 million in early 2021, followed by a reduction to 16,016 million in 2022. This pattern suggests periodic investments or asset acquisitions coupled with some divestitures or revaluations toward the end of the interval.
- Segment Return on Assets (ROA)
- Segment ROA fluctuates over the years, beginning at 14.12% in 2017 and peaking slightly at 15.16% in 2018 before a minor decline in 2019 and a more pronounced drop to 13.39% in 2020. The ratio remains almost stable at 13.32% in 2021 but then rises sharply to 17.45% in 2022. The initial decline and subsequent increase suggest variations in profit generation efficiency relative to asset base, with the latest year indicating a significant improvement in asset utilization and profitability.
Segment ROA: International
Best Buy Co. Inc.; International; segment ROA calculation
| 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 | 244) | 43) | 102) | 103) | 91) | 90) |
| Assets | 1,488) | 1,442) | 1,344) | 993) | 1,496) | 1,360) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 16.40% | 2.98% | 7.59% | 10.37% | 6.08% | 6.62% |
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
Segment ROA = 100 × Operating income ÷ Assets
= 100 × 244 ÷ 1,488 = 16.40%
- Operating Income
- The operating income exhibited a generally fluctuating trend over the period analyzed. Starting at 90 million USD in early 2017, it showed minimal increase in 2018 and 2019, reaching 103 million USD. In 2020, it slightly declined to 102 million USD, followed by a significant drop to 43 million USD in 2021. However, this was succeeded by a substantial recovery in 2022, with operating income climbing sharply to 244 million USD, the highest value in the period.
- Assets
- Assets displayed variability during the analyzed timeframe. Beginning at 1360 million USD in 2017, assets increased to 1496 million USD in 2018 before declining noticeably to 993 million USD in 2019. This decrease was reversed in subsequent years, with assets rising to 1344 million USD in 2020 and continuing to increase moderately to 1442 million USD in 2021 and 1488 million USD in 2022. Overall, assets demonstrated a recovery after a mid-period dip, ending slightly higher than the initial value.
- Segment Return on Assets (ROA)
- The segment ROA experienced considerable fluctuations throughout the period. It started at 6.62% in 2017, decreasing modestly to 6.08% in 2018 before increasing significantly to 10.37% in 2019. In 2020, ROA declined to 7.59%, followed by a sharp drop to 2.98% in 2021. In contrast, 2022 saw a notable rebound to 16.4%, the highest ROA noted in the timeframe. This suggests varying efficiency in asset utilization with marked improvement in the most recent year analyzed.
- Summary Observations
- The International segment showed volatile performance over the six-year period. Operating income and segment ROA followed similar patterns of initial stability, mid-period decline, and significant recovery by 2022. Assets fluctuated, with a notable decrease in 2019 but gradual recovery thereafter. The sharp increase in both operating income and ROA in 2022 points to enhanced profitability and improved asset efficiency in the most recent year, possibly reflecting successful strategic adjustments or market conditions favoring the segment.
Segment Asset Turnover
Best Buy Co. Inc., asset turnover by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 2.99 | 2.46 | 2.82 | 3.30 | 3.35 | 2.90 |
| International | 2.64 | 2.75 | 2.62 | 3.60 | 2.33 | 2.32 |
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).
- Domestic Segment Asset Turnover
- The domestic segment asset turnover ratio exhibits fluctuations over the reported periods. Initially, there is a notable increase from 2.9 in early 2017 to a peak of 3.35 in early 2018, indicating improved efficiency in utilizing assets to generate revenue. This is followed by a slight decline to 3.3 in 2019. Subsequently, the ratio decreases more markedly, reaching its lowest point of 2.46 in early 2021. In the latest period, early 2022, the ratio recovers somewhat to 2.99, suggesting a partial rebound in asset utilization efficiency.
- International Segment Asset Turnover
- The international segment shows a more variable pattern, with an initial stability between 2.32 and 2.33 in early 2017 and 2018. There is a substantial increase in early 2019 to 3.6, indicating a significant improvement in asset turnover. However, this peak is followed by a decline to 2.62 in 2020. In the later periods, the ratio stabilizes around 2.64 to 2.75, with a slight uptick in 2021 before dipping marginally in 2022. This pattern suggests more volatility in the international segment's asset efficiency compared to the domestic segment.
- Comparative Insights
- Over the examined years, the domestic segment generally maintains higher asset turnover ratios than the international segment, except notably in 2019 when the international ratio surpasses domestic by a significant margin. Both segments experience peak turnover values around 2018 and 2019, followed by declines coinciding with the years likely affected by broader market or operational challenges. The recovery in the domestic segment ratio in 2022 contrasts with a slight downturn in the international segment, possibly reflecting differing regional performance dynamics or strategic responses.
Segment Asset Turnover: Domestic
Best Buy Co. Inc.; Domestic; segment asset turnover calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 47,830) | 43,293) | 40,114) | 39,304) | 38,662) | 36,248) |
| Assets | 16,016) | 17,625) | 14,247) | 11,908) | 11,553) | 12,496) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 2.99 | 2.46 | 2.82 | 3.30 | 3.35 | 2.90 |
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).
1 2022 Calculation
Segment asset turnover = Revenue ÷ Assets
= 47,830 ÷ 16,016 = 2.99
The data reveals several notable trends within the domestic segment over the examined periods.
- Revenue
- There is a consistent upward trajectory in revenue from 2017 to 2022. Starting at approximately 36.2 billion US dollars in early 2017, revenue gradually increased each year, reaching nearly 47.8 billion US dollars by early 2022. This steady growth reflects a strong sales performance and expanding market presence in the domestic segment over the six-year horizon.
- Assets
- Asset values exhibit some variability over the years. Initially, assets decrease from around 12.5 billion US dollars in 2017 to approximately 11.5 billion in 2018. From 2018 onward, assets increase, peaking at roughly 17.6 billion US dollars in early 2021, followed by a decline to about 16 billion by early 2022. This pattern suggests a period of asset investment or acquisition followed by a moderate reduction or revaluation in the most recent year.
- Segment Asset Turnover Ratio
- The segment asset turnover ratio, illustrating efficiency in using assets to generate revenue, shows fluctuations during the reported years. Beginning at 2.9 in 2017, the ratio rises to a peak of 3.35 in 2018 before undergoing a gradual decline to 2.46 in 2021. A recovery to 2.99 occurs in 2022. These movements may indicate changes in operational efficiency or asset utilization, with a high in 2018 suggesting strong asset productivity and the dip toward 2021 signaling lower efficiency, partially recuperated in 2022.
In summary, the domestic segment demonstrates solid revenue growth amidst dynamic asset management and fluctuating asset efficiency. The data suggests ongoing strategic adjustments in asset deployment while maintaining an overall growing revenue base.
Segment Asset Turnover: International
Best Buy Co. Inc.; International; segment asset turnover calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 3,931) | 3,969) | 3,524) | 3,575) | 3,489) | 3,155) |
| Assets | 1,488) | 1,442) | 1,344) | 993) | 1,496) | 1,360) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 2.64 | 2.75 | 2.62 | 3.60 | 2.33 | 2.32 |
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
Segment asset turnover = Revenue ÷ Assets
= 3,931 ÷ 1,488 = 2.64
The analysis of the International segment data over the six-year period reveals several noteworthy trends in revenue, assets, and asset turnover ratios.
- Revenue
- Revenue shows a consistent increasing trend from 2017 through 2021, rising from US$3,155 million in 2017 to a peak of US$3,969 million in 2021. However, in 2022, revenue slightly declined to US$3,931 million, indicating a minor retracement after several years of growth.
- Assets
- Assets display more variability over the period. After a gradual increase from US$1,360 million in 2017 to US$1,496 million in 2018, assets sharply decreased to US$993 million in 2019. Subsequently, assets rebounded and grew modestly to US$1,488 million by 2022, approaching the earlier higher levels observed in 2017-2018.
- Segment Asset Turnover Ratio
- The asset turnover ratio, which measures efficiency in using assets to generate revenue, fluctuated notably. It remained stable around 2.3 in 2017 and 2018 before jumping significantly to 3.6 in 2019, coinciding with the large drop in assets that year. Following 2019, the ratio declined each year to 2.62 in 2020, 2.75 in 2021, and 2.64 in 2022, indicating a partial normalization as assets recovered and revenue growth slowed.
Overall, the International segment experienced steady revenue growth with a brief decline at the end of the period. Asset levels were generally stable, aside from the notable dip in 2019, which influenced a temporary spike in asset turnover. Post-2019, both assets and turnover ratios stabilized, suggesting adjustments in asset management amid changing revenue dynamics.
Segment Capital Expenditures to Depreciation
Best Buy Co. Inc., capital expenditures to depreciation by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 0.94 | 0.97 | 1.01 | 1.12 | 0.96 | 0.86 |
| International | 0.94 | 0.60 | 0.88 | 0.82 | 1.58 | 1.37 |
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).
- Domestic Segment Capital Expenditures to Depreciation Ratio
- The domestic segment exhibited a generally stable capital expenditure to depreciation ratio over the analyzed periods. Starting at 0.86, the ratio increased to 0.96 and peaked at 1.12 in the 2019 fiscal year. After this peak, the ratio saw a gradual decline in subsequent years, reaching 1.01 in 2020 and further decreasing to 0.97 and 0.94 in the 2021 and 2022 fiscal years respectively. This trend suggests an initial emphasis on increasing capital investment relative to depreciation, followed by a modest reduction in such investment intensity.
- International Segment Capital Expenditures to Depreciation Ratio
- The international segment demonstrated more volatility throughout the observed periods. The ratio began at a relatively high level of 1.37 in 2017 and increased further to 1.58 in 2018. However, from 2019 onward, the ratio sharply declined to 0.82 and remained below 1.0 in the following years with a slight recovery to 0.88 in 2020, a significant drop to 0.6 in 2021, then rebounding to 0.94 in 2022. This pattern indicates fluctuations in capital spending relative to depreciation, with periods of substantial reduction followed by partial recoveries.
- Comparative Insights
- Comparing both segments, the domestic ratio showed comparatively smoother and less volatile changes, generally hovering near or slightly below 1.0, indicating a relatively steady approach to capital expenditures in relation to asset depreciation. In contrast, the international segment experienced pronounced variability, with higher peaks early on and significant troughs later. By the end of the period, both segments converged around similar values, close to 0.9, suggesting a realignment of capital expenditure strategies across regions in recent years.
Segment Capital Expenditures to Depreciation: Domestic
Best Buy Co. Inc.; Domestic; segment capital expenditures to depreciation calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 691) | 680) | 691) | 770) | 606) | 526) |
| Depreciation | 738) | 704) | 681) | 687) | 631) | 613) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.94 | 0.97 | 1.01 | 1.12 | 0.96 | 0.86 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 691 ÷ 738 = 0.94
- Capital Expenditures
- The capital expenditures exhibited an overall increasing trend from 2017 to 2019, rising from 526 million US dollars in early 2017 to a peak of 770 million US dollars in early 2019. Following this peak, capital spending declined somewhat, reaching 691 million US dollars by early 2020, then decreased slightly to 680 million US dollars in early 2021, before stabilizing at 691 million US dollars in early 2022.
- Depreciation
- Depreciation levels showed a consistent upward trajectory throughout the period. Starting at 613 million US dollars in early 2017, depreciation rose gradually each year to reach 738 million US dollars by early 2022. This steady increase reflects ongoing capital asset utilization and aging.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation started below unity at 0.86 in early 2017, indicating capital spending was less than depreciation expense. The ratio increased to exceed unity in early 2019 (1.12), reflecting a period when capital expenditures surpassed depreciation. Subsequently, the ratio declined gradually to 0.94 by early 2022, suggesting that capital expenditures remained slightly below depreciation levels, signaling a potential moderation in asset reinvestment relative to asset consumption or aging.
Segment Capital Expenditures to Depreciation: International
Best Buy Co. Inc.; International; segment capital expenditures to depreciation calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 46) | 33) | 52) | 49) | 82) | 56) |
| Depreciation | 49) | 55) | 59) | 60) | 52) | 41) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.94 | 0.60 | 0.88 | 0.82 | 1.58 | 1.37 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation
= 46 ÷ 49 = 0.94
- Capital Expenditures
- Capital expenditures exhibit a fluctuating trend over the analyzed periods. The value peaked in the year ending February 3, 2018, at 82 million US dollars, followed by a notable decline to 49 million in the subsequent year. It showed minor variation in the years after, descending to the lowest value of 33 million in the year ending January 30, 2021, and then increasing to 46 million in the last reported period.
- Depreciation
- Depreciation values generally increased from 41 million US dollars in the year ending January 28, 2017, reaching their maximum of 60 million in the year ending February 2, 2019. Subsequently, depreciation figures displayed a gradual decrease, falling to 49 million by the year ending January 29, 2022, indicating a declining trend in asset depreciation over the latter years.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation demonstrated volatility throughout the periods analyzed. Starting at 1.37 in 2017, it increased to its highest point at 1.58 in 2018, suggesting capital expenditures significantly outpaced depreciation at that time. However, the ratio dropped markedly in the following years, reaching a low of 0.6 in 2021, indicating capital expenditures were substantially lower relative to depreciation. A partial recovery to 0.94 was observed in the final period, though it remained below the initial levels.
Revenue
Best Buy Co. Inc., revenue by reportable segment
US$ in millions
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 47,830) | 43,293) | 40,114) | 39,304) | 38,662) | 36,248) |
| International | 3,931) | 3,969) | 3,524) | 3,575) | 3,489) | 3,155) |
| Total | 51,761) | 47,262) | 43,638) | 42,879) | 42,151) | 39,403) |
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).
- Domestic Revenue Trend
- The domestic segment revenue shows a consistent upward trajectory over the six-year period. Starting at 36,248 million US dollars in early 2017, revenue steadily increased each year, reaching 47,830 million US dollars by early 2022. This reflects an overall growth of approximately 32%, indicating strong and sustained demand within the domestic market.
- International Revenue Trend
- The international revenue exhibits a more fluctuating pattern. Beginning at 3,155 million US dollars in 2017, it increased moderately through 2019, peaking at 3,575 million US dollars. However, there was a slight decline observed in 2020 to 3,524 million and a marginal increase in 2021 to 3,969 million, before decreasing slightly again to 3,931 million in 2022. Overall, the international segment shows modest growth but with less stability compared to the domestic segment.
- Total Revenue Analysis
- Total revenue follows the growth pattern of the domestic segment due to its larger share in the overall revenue composition. Starting at 39,403 million US dollars in 2017, total revenue increases steadily every year, reaching 51,761 million US dollars in 2022. This represents a cumulative increase of about 31%, primarily driven by robust domestic performance while international revenue contributes a smaller, more variable proportion.
- Segment Proportion Insights
- Throughout the analyzed period, the domestic segment consistently accounts for the majority of total revenue, exceeding 90%. The international segment remains a relatively small portion but shows slight fluctuations that suggest strategic or market challenges in international operations. The overall revenue growth trajectory is strongly anchored by domestic market performance.
Operating income
Best Buy Co. Inc., operating income by reportable segment
US$ in millions
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 2,795) | 2,348) | 1,907) | 1,797) | 1,752) | 1,764) |
| International | 244) | 43) | 102) | 103) | 91) | 90) |
| Total | 3,039) | 2,391) | 2,009) | 1,900) | 1,843) | 1,854) |
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).
The operating income data presents a clear upward trend over the six-year period from early 2017 to early 2022. Both the domestic and international segments exhibit changes in performance, impacting the total operating income accordingly.
- Domestic Segment
- The domestic operating income showed steady growth overall, starting at 1,764 million US dollars in January 2017 and rising to 2,795 million US dollars by January 2022. There was a modest increase from 2017 through 2020, with figures fluctuating slightly around the 1,750 to 1,900 million range. However, from 2020 onward, a more pronounced increase is observed, culminating in a significant rise by 2022.
- International Segment
- The international segment displayed a more volatile pattern. From January 2017 to February 2020, the operating income remained relatively stable around 90 to 103 million US dollars. However, a sharp decline occurred in January 2021, with income dropping to 43 million US dollars. This was followed by a substantial rebound by January 2022, reaching 244 million US dollars, which is the highest value recorded for this segment during the period analyzed.
- Total Operating Income
- Total operating income followed the general upward trend driven largely by domestic growth and the recovery in international income. Beginning at 1,854 million US dollars in January 2017, the total modestly increased until 2020, when it reached 2,009 million US dollars. Despite the dip in the international segment in 2021, total income rose to 2,391 million US dollars and then experienced a notable jump to 3,039 million US dollars in 2022.
Overall, the data indicates strong growth momentum in the domestic market, with some volatility in the international segment but a significant recovery and expansion by the end of the period. The total operating income reflects these dynamics, resulting in an accelerating upward trajectory, particularly in the last two years analyzed.
Assets
Best Buy Co. Inc., assets by reportable segment
US$ in millions
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 16,016) | 17,625) | 14,247) | 11,908) | 11,553) | 12,496) |
| International | 1,488) | 1,442) | 1,344) | 993) | 1,496) | 1,360) |
| Total | 17,504) | 19,067) | 15,591) | 12,901) | 13,049) | 13,856) |
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).
- Domestic Segment Assets
- The domestic segment assets exhibit a general upward trend from January 28, 2017, to January 29, 2022. Starting at $12,496 million in early 2017, the value decreased slightly to $11,553 million in 2018 but rebounded to $11,908 million in 2019. A significant increase occurred in 2020 and 2021, with assets rising to $14,247 million and peaking at $17,625 million respectively. However, there was a decline in 2022 to $16,016 million, indicating potential adjustments or market influences impacting the domestic assets.
- International Segment Assets
- The international segment assets show more variability and less consistent growth compared to the domestic segment. From $1,360 million in 2017, the assets increased to $1,496 million in 2018 but then declined sharply to $993 million in 2019. The following years show recovery and growth, with assets increasing to $1,344 million in 2020, $1,442 million in 2021, and $1,488 million in 2022. This pattern may reflect fluctuating international market conditions or strategic changes affecting these assets.
- Total Segment Assets
- Total assets follow a trend closely aligned with the domestic segment due to its larger share. The total assets decreased slightly from $13,856 million in 2017 to $13,049 million in 2018 and then to $12,901 million in 2019. A marked increase appears in 2020, reaching $15,591 million, followed by further growth to $19,067 million in 2021. In 2022, there is a decrease to $17,504 million, consistent with the decline seen in domestic assets. Overall, the total assets demonstrate growth over the five-year period with notable peaks and a recent dip.
- Insights
- The data indicates that the domestic segment constitutes the majority of the company's assets and largely drives overall asset trends. Despite some volatility, especially in 2018 and 2022, there is an overarching trend of asset growth over the analyzed periods. The international segment is smaller and shows greater fluctuations, with a noticeable dip in 2019 followed by gradual recovery. The declines observed in 2022 for both domestic and total assets could be attributed to market conditions, restructuring, or other operational factors. The overall increase until 2021 suggests expansion or investment, while the recent downturn warrants attention for strategic or economic influences.
Capital expenditures
Best Buy Co. Inc., capital expenditures by reportable segment
US$ in millions
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 691) | 680) | 691) | 770) | 606) | 526) |
| International | 46) | 33) | 52) | 49) | 82) | 56) |
| Total | 737) | 713) | 743) | 819) | 688) | 582) |
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).
- Domestic Capital Expenditures
- The domestic capital expenditures demonstrate a general upward trend from 2017 to 2019, increasing from 526 million US dollars to 770 million US dollars. However, from 2019 onwards, there is a noticeable decline in 2020 and 2021, dropping to 691 million and 680 million US dollars respectively, before stabilizing back to 691 million US dollars in 2022. This pattern suggests increased investment initially, followed by a reduction and eventual stabilization.
- International Capital Expenditures
- International capital expenditures show more variability, starting at 56 million US dollars in 2017 and peaking at 82 million in 2018. After this peak, there is a sharp decline to 49 million in 2019, followed by relatively stable but lower investment levels of 52 million in 2020, then decreasing to 33 million in 2021, before slightly increasing to 46 million in 2022. This indicates fluctuating commitment in international markets with an overall decreasing tendency in recent years.
- Total Capital Expenditures
- Total capital expenditures follow a trajectory similar to the domestic segment, increasing from 582 million US dollars in 2017 to a peak of 819 million US dollars in 2019. This is followed by a decline to 743 million in 2020 and further to 713 million in 2021, before a modest recovery to 737 million in 2022. The total expenditures largely reflect the domestic spending pattern, with international expenditures contributing less to the overall total.
- Overall Insights
- The data reveals that capital expenditures were increasing significantly until 2019 for both domestic and total segments, indicating an expansion or investment phase. Post-2019, expenditures across all segments contracted, likely influenced by external or strategic factors, before showing signs of stabilization in the most recent year. International capital spending exhibits higher volatility and a downward trend, suggesting a shift in focus or reduced investment in international operations relative to domestic ones.
Depreciation
Best Buy Co. Inc., depreciation by reportable segment
US$ in millions
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Domestic | 738) | 704) | 681) | 687) | 631) | 613) |
| International | 49) | 55) | 59) | 60) | 52) | 41) |
| Total | 787) | 759) | 740) | 747) | 683) | 654) |
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).
- Domestic Segment Depreciation
- The depreciation expense for the domestic segment exhibited a generally upward trend over the six-year period. Starting at $613 million in early 2017, it increased steadily almost every year, reaching $738 million in early 2022. Although there was a slight dip from 2019 to 2020, the overall trajectory remained positive, indicating growing asset base or increasing depreciation charges in this segment.
- International Segment Depreciation
- The international segment showed a more variable pattern. Depreciation increased from $41 million in 2017 to a peak of $60 million in 2019. Following this peak, there was a gradual decline over the next three years, reaching $49 million by early 2022. This decline suggests possible asset disposals, lower capital expenditure, or changes in depreciation policies internationally during the latter years.
- Total Depreciation
- Aggregate depreciation across all segments rose from $654 million in 2017 to $787 million in 2022, reflecting an overall upward trend consistent with domestic segment growth offset partially by the declining international trend in the recent years. The total depreciation closely mirrors the domestic pattern given its larger proportion of total depreciation expense.
- Insights and Summary
- The data indicates a steady increase in depreciation expense domestically, implying expansion or increasing capitalization of assets in that market. Conversely, international depreciation exhibits a rise and fall cycle, which might signal strategic shifts, realignment, or contraction in international operations. The resultant total depreciation expense reflects these combined effects, showcasing overall growth tempered by segment-specific dynamics.