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
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 financial data over the six-year period demonstrates several notable trends and changes in the company's performance metrics.
- Revenue
- Revenue consistently increased each year, rising from $39,403 million in 2017 to $51,761 million in 2022. This progression indicates steady top-line growth with an overall increase of approximately 31.4% over the period.
- Cost of Sales and Gross Profit
- Cost of sales also rose in tandem with revenue, moving from $29,963 million in 2017 to $40,121 million in 2022. Despite this increase, gross profit saw a positive trend, increasing from $9,440 million in 2017 to $11,640 million in 2022. This suggests an improvement in margin efficiency or effective cost management relative to sales growth.
- Selling, General and Administrative Expenses (SG&A)
- SG&A expenses remained relatively stable in absolute terms from 2017 to 2021, fluctuating slightly around the $7,900 million to $8,000 million mark, but sharply increased to $8,635 million in 2022. The increase in 2022 could indicate rising operational costs or strategic investments in administrative and selling efforts.
- Restructuring Charges
- Restructuring charges were minimal and somewhat volatile, ranging from -$39 million in 2017 to a positive $34 million in 2022, with a notable spike to -$254 million in 2021. This spike may reflect a significant restructuring event or related expense during that year, followed by a reversal or gain the next year.
- Operating Income
- Operating income showed a steady increase from $1,854 million in 2017 to $3,039 million in 2022. This growth reflects improved operating profitability, which aligns with the increase in gross profit and controlled operating expenses despite rising SG&A in the last year.
- Other Income and Expenses
- Gains on sale of investments and investment income were relatively minor contributors, with gains fluctuating at low absolute values and investment income declining notably in 2022 from previous years. Interest expense decreased significantly over time from -$72 million in 2017 to -$25 million in 2022, indicating reduced debt levels or lower borrowing costs. Other income/expense remained relatively small and negative throughout the period.
- Earnings Before Income Tax and Net Earnings
- Earnings before income tax showed consistent growth, increasing from $1,816 million in 2017 to $3,024 million in 2022. Income tax expense displayed variability but did not rise proportionally with pre-tax income, which may contribute to improved net profitability. Net earnings increased substantially from $1,228 million in 2017 to $2,454 million in 2022, demonstrating a strong upward trend and reflecting enhanced overall financial performance.
In summary, the data reveals steady revenue growth accompanied by improving gross and operating profits. While operating expenses remained relatively stable for much of the period, a rise in SG&A expenses in 2022 and fluctuating restructuring charges warrant monitoring. Interest expenses decreased markedly, which contributed positively to net earnings. Overall, profitability improved significantly over the six years, as evidenced by the doubling of net earnings.