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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Best Buy Co. Inc., consolidated cash flow 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
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Depreciation and amortization	869)	839)	812)	770)	683)	654)
Restructuring charges	(34)	254)	41)	46)	10)	39)
Stock-based compensation	141)	135)	143)	123)	129)	108)
Deferred income taxes	14)	(36)	70)	10)	162)	201)
Other, net	11)	3)	21)	(25)	(13)	(31)
Receivables	17)	73)	(131)	28)	315)	(185)
Merchandise inventories	(328)	(435)	237)	(194)	(335)	193)
Other assets	(14)	(51)	16)	(34)	(21)	10)
Accounts payable	(201)	1,676)	47)	432)	(196)	518)
Income taxes	(156)	173)	(132)	22)	290)	(213)
Other liabilities	479)	498)	(100)	(234)	117)	23)
Changes in operating assets and liabilities, net of acquired assets and liabilities	(203)	1,934)	(63)	20)	170)	346)
Adjustments to reconcile net earnings to cash provided by operating activities	798)	3,129)	1,024)	944)	1,141)	1,317)
Cash provided by operating activities	3,252)	4,927)	2,565)	2,408)	2,141)	2,545)
Additions to property and equipment, net of non-cash capital expenditures	(737)	(713)	(743)	(819)	(688)	(582)
Purchases of investments	(233)	(620)	(330)	—)	(4,325)	(3,045)
Sales of investments	66)	546)	322)	2,098)	4,018)	2,689)
Acquisitions, net of cash acquired	(468)	—)	(145)	(787)	—)	—)
Change in restricted assets	—)	—)	—)	—)	—)	(8)
Other, net	—)	(1)	1)	16)	(7)	59)
Cash (used in) provided by investing activities	(1,372)	(788)	(895)	508)	(1,002)	(887)
Repurchase of common stock	(3,502)	(312)	(1,003)	(1,505)	(2,004)	(698)
Issuance of common stock	29)	28)	48)	38)	163)	171)
Dividends paid	(688)	(568)	(527)	(497)	(409)	(505)
Borrowings of debt	—)	1,892)	—)	498)	—)	—)
Repayments of debt	(133)	(1,916)	(15)	(546)	(46)	(394)
Other, net	(3)	—)	(1)	(6)	(1)	22)
Cash used in financing activities	(4,297)	(876)	(1,498)	(2,018)	(2,297)	(1,404)
Effect of exchange rate changes on cash	(3)	7)	(1)	(14)	25)	10)
Increase (decrease) in cash, cash equivalents and restricted cash	(2,420)	3,270)	171)	884)	(1,133)	264)
Cash, cash equivalents and restricted cash at beginning of period	5,625)	2,355)	2,184)	1,300)	2,433)	1,976)
Cash, cash equivalents and restricted cash at end of period	3,205)	5,625)	2,355)	2,184)	1,300)	2,240)

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 cash flow profile over the six-year period reflects a company with strong operating cash generation and a consistent strategy of returning capital to shareholders, characterized by significant stock repurchases and steady dividend growth.

Operating Cash Flow Trends: Net earnings exhibited a consistent upward trajectory, growing from 1,228 million USD in 2017 to 2,454 million USD in 2022. Cash provided by operating activities generally mirrored this growth, with a notable peak in 2021 at 4,927 million USD. This 2021 surge was primarily driven by a substantial increase in accounts payable, which reached 1,676 million USD, and growth in other liabilities. Depreciation and amortization costs rose steadily from 654 million USD to 869 million USD over the period, contributing a stable non-cash add-back to operating cash flow.
Investing Activity Patterns: Capital expenditures remained relatively stable, with annual additions to property and equipment ranging between 582 million USD and 819 million USD. Investing activities were characterized by volatility in investment portfolios during 2017 and 2018, featuring large-scale purchases and sales. Strategic acquisitions were observed in 2019 (787 million USD) and 2022 (468 million USD). Overall, investing activities typically resulted in a net cash outflow, except for 2019, where sales of investments led to a positive cash flow of 508 million USD.
Financing and Shareholder Distributions: Financing activities were consistently negative, dominated by aggressive common stock repurchases. Share buybacks peaked in 2022 at 3,502 million USD and in 2018 at 2,004 million USD. Dividends paid also showed a gradual increase, rising from 505 million USD in 2017 to 688 million USD in 2022. Debt management was relatively quiet until 2021, which saw a significant borrowing of 1,892 million USD nearly offset by a repayment of 1,916 million USD in the same period.

The overall liquidity position ended the period with a decrease in cash, cash equivalents, and restricted cash, falling from a high of 5,625 million USD in 2021 to 3,205 million USD in 2022. This reduction is directly attributable to the intensified common stock repurchase program in the final year of the analysis.

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