Common-Size Balance Sheet: Assets
Quarterly Data
Best Buy Co. Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
The asset composition of the company underwent a significant structural transition between 2016 and 2022, characterized by a shift from a high concentration of current assets toward a larger proportion of non-current assets. This evolution is marked by extreme fluctuations in liquidity and the integration of new accounting standards regarding lease assets.
- Liquidity and Cash Management
- Cash and cash equivalents exhibited substantial volatility, with a notable surge during the 2020 period, peaking at 30.47% of total assets in August 2020. This period of elevated liquidity was followed by a sharp decline, with cash levels dropping to approximately 4.20% by April 2022. Short-term investments, which initially represented up to 15.81% of assets in 2017, declined precipitously after 2018, eventually becoming a negligible component of the balance sheet.
- Working Capital and Inventory
- Merchandise inventories represent the largest single component of current assets and demonstrate strong seasonality. Inventory levels consistently peak in the fourth quarter of the year, reaching a high of 54.45% in November 2018 and remaining a dominant asset class throughout the analysis period. Net receivables remained relatively stable but showed a gradual downward trend, decreasing from highs near 9.72% in early 2017 to a range between 4.75% and 6.17% in the latter years.
- Non-Current Asset Evolution
- The non-current asset profile was fundamentally altered in May 2019 with the introduction of operating lease assets, which immediately accounted for 18.61% of total assets. This addition contributed to an overall increase in non-current assets, which grew from approximately 28% in 2016 to over 41% by October 2022. Concurrently, net property and equipment showed a slow decline from 18.08% to 13.94% over the period. Goodwill increased steadily, rising from approximately 3% to a peak of 9.08% in April 2022.
- Total Asset Distribution
- Current assets, which initially comprised over 70% of the total asset base, experienced a general decline, reaching a low of 54.12% in July 2022. This indicates a transition toward a more balanced distribution between liquid current assets and long-term operating assets, influenced largely by the capitalization of leases and a reduction in cash holdings toward the end of the period.
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