Name: Best Buy Co. Inc. (NYSE:BBY) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Best Buy Co. Inc., consolidated income statement

US$ in millions

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Revenue	51,761)	47,262)	43,638)	42,879)	42,151)	39,403)
Cost of sales	(40,121)	(36,689)	(33,590)	(32,918)	(32,275)	(29,963)
Gross profit	11,640)	10,573)	10,048)	9,961)	9,876)	9,440)
Selling, general and administrative expenses	(8,635)	(7,928)	(7,998)	(8,015)	(8,023)	(7,547)
Restructuring charges	34)	(254)	(41)	(46)	(10)	(39)
Operating income	3,039)	2,391)	2,009)	1,900)	1,843)	1,854)
Gain on sale of investments	—)	1)	1)	12)	1)	3)
Investment income and other	10)	37)	47)	49)	48)	31)
Interest expense	(25)	(52)	(64)	(73)	(75)	(72)
Other income (expense)	(15)	(14)	(16)	(12)	(26)	(38)
Earnings before income tax expense and equity in income of affiliates	3,024)	2,377)	1,993)	1,888)	1,817)	1,816)
Income tax expense	(574)	(579)	(452)	(424)	(818)	(609)
Equity in income of affiliates	4)	—)	—)	—)	—)	—)
Net earnings from continuing operations	2,454)	1,798)	1,541)	1,464)	999)	1,207)
Gain from discontinued operations, net of tax	—)	—)	—)	—)	1)	21)
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)

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).

Financial performance from 2017 to 2022 is characterized by consistent top-line growth and an expansion of operating profitability, despite fluctuations in net earnings during the middle of the period.

Revenue and Gross Profit Trends: Revenue exhibited a steady upward trajectory, increasing from 39,403 million USD in 2017 to 51,761 million USD in 2022. Gross profit followed a similar growth pattern, rising from 9,440 million USD to 11,640 million USD. However, the growth rate of revenue slightly exceeded that of gross profit, indicating a gradual compression of the gross margin percentage over the six-year period.
Operating Income and Expense Control: Operating income grew from 1,854 million USD in 2017 to 3,039 million USD in 2022. This improvement is attributed to effective cost containment within selling, general, and administrative (SG&A) expenses, which remained relatively flat between 7,547 million USD and 8,635 million USD despite the significant increase in scale. A significant outlier is observed in 2021, where restructuring charges spiked to 254 million USD, though this did not prevent operating income from reaching 2,391 million USD that year.
Net Earnings and Tax Volatility: Net earnings increased from 1,228 million USD in 2017 to 2,454 million USD in 2022. The growth was non-linear, with a notable dip to 1,000 million USD in 2018, primarily driven by a peak in income tax expense of 818 million USD. Following 2018, net earnings entered a period of sustained growth, peaking in 2022.
Interest and Non-Operating Analysis: A consistent downward trend in interest expense is observed, falling from 72 million USD in 2017 to 25 million USD in 2022. This suggests a reduction in debt obligations or a favorable shift in the company's financing structure. Gains on the sale of investments and other investment income remained marginal and did not significantly impact the overall bottom-line results.

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