Net Profit Margin
since 2005
Calculation
Best Buy Co. Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 4.74% | = | 100 | × | 2,454) | ÷ | 51,761) |
| Jan 30, 2021 | 3.80% | = | 100 | × | 1,798) | ÷ | 47,262) |
| Feb 1, 2020 | 3.53% | = | 100 | × | 1,541) | ÷ | 43,638) |
| Feb 2, 2019 | 3.41% | = | 100 | × | 1,464) | ÷ | 42,879) |
| Feb 3, 2018 | 2.37% | = | 100 | × | 1,000) | ÷ | 42,151) |
| Jan 28, 2017 | 3.12% | = | 100 | × | 1,228) | ÷ | 39,403) |
| Jan 30, 2016 | 2.27% | = | 100 | × | 897) | ÷ | 39,528) |
| Jan 31, 2015 | 3.06% | = | 100 | × | 1,233) | ÷ | 40,339) |
| Feb 1, 2014 | 1.25% | = | 100 | × | 532) | ÷ | 42,410) |
| Feb 2, 2013 | -0.98% | = | 100 | × | (441) | ÷ | 45,085) |
| Mar 3, 2012 | -2.43% | = | 100 | × | (1,231) | ÷ | 50,705) |
| Feb 26, 2011 | 2.54% | = | 100 | × | 1,277) | ÷ | 50,272) |
| Feb 27, 2010 | 2.65% | = | 100 | × | 1,317) | ÷ | 49,694) |
| Feb 28, 2009 | 2.23% | = | 100 | × | 1,003) | ÷ | 45,015) |
| Mar 1, 2008 | 3.52% | = | 100 | × | 1,407) | ÷ | 40,023) |
| Mar 3, 2007 | 3.83% | = | 100 | × | 1,377) | ÷ | 35,934) |
| Feb 25, 2006 | 3.70% | = | 100 | × | 1,140) | ÷ | 30,848) |
| Feb 26, 2005 | 3.59% | = | 100 | × | 984) | ÷ | 27,433) |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
1 US$ in millions
The net profit margin experienced significant volatility over the analyzed period, characterized by an initial phase of stability, a severe contraction leading to net losses, and a subsequent long-term recovery culminating in a period high.
- Initial Performance and Early Decline (2005–2011)
- Between 2005 and 2008, the net profit margin remained relatively stable, fluctuating within a narrow range between 3.52% and 3.83%. A downward trend emerged in 2009, with the margin dropping to 2.23%, followed by a partial recovery to 2.65% in 2010 and a slight dip to 2.54% in 2011.
- Period of Financial Contraction (2012–2013)
- A critical decline is observed during the 2012 and 2013 fiscal years. Despite revenue reaching its historical peak of 50,705 million US$ in 2012, the net profit margin fell sharply to -2.43%. This negative trend persisted into 2013 with a margin of -0.98%, coinciding with a significant drop in net earnings to -1,231 million US$ and -441 million US$ respectively.
- Recovery and Expansion Phase (2014–2022)
- A sustained recovery began in 2014, as the net profit margin returned to positive territory at 1.25% and climbed to 3.06% by 2015. Following minor fluctuations between 2016 and 2018, a consistent upward trajectory is evident from 2019 onward. The margin improved from 3.41% in 2019 to a peak of 4.74% in 2022, the highest recorded value in the provided dataset.
- Correlation Between Revenue and Profitability
- The data indicates a decoupling of revenue and profitability during the 2012 crisis, where maximum revenue did not translate to profit. However, in the final phase (2020–2022), a positive correlation is observed as both revenue and net profit margins increased simultaneously, suggesting improved operational efficiency and higher profitability per dollar of sales.
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Comparison to Competitors
Best Buy Co. Inc., net profit margin, long-term trends, comparison to competitors
| Best Buy Co. Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 29, 2022 | 4.74% | -0.53% | 10.87% | 8.77% | 6.76% |
| Jan 30, 2021 | 3.80% | 7.10% | 9.74% | 6.51% | 0.28% |
| Feb 1, 2020 | 3.53% | 5.53% | 10.20% | 5.93% | 7.84% |
| Feb 2, 2019 | 3.41% | 4.13% | 10.28% | 3.25% | 7.85% |
| Feb 3, 2018 | 2.37% | 4.33% | 8.55% | 5.02% | 7.27% |
| Jan 28, 2017 | 3.12% | 1.71% | 8.41% | 4.76% | 6.93% |
| Jan 30, 2016 | 2.27% | 1.74% | 7.92% | 4.31% | 7.36% |
| Jan 31, 2015 | 3.06% | 0.56% | 7.63% | 4.80% | 7.62% |
| Feb 1, 2014 | 1.25% | -0.27% | 6.83% | 4.28% | 7.79% |
| Feb 2, 2013 | -0.98% | 0.37% | 6.07% | 3.88% | 7.37% |
| Mar 3, 2012 | -2.43% | -0.06% | 5.52% | 3.66% | 6.45% |
| Feb 26, 2011 | 2.54% | 1.31% | 4.91% | 4.12% | 6.12% |
| Feb 27, 2010 | 2.65% | 3.37% | 4.02% | 3.78% | 5.98% |
| Feb 28, 2009 | 2.23% | 3.68% | 3.17% | 4.55% | 4.63% |
| Mar 1, 2008 | 3.52% | 3.37% | 5.68% | 5.82% | 4.14% |
| Mar 3, 2007 | 3.83% | 3.21% | 6.34% | 6.62% | 4.24% |
| Feb 25, 2006 | 3.70% | 1.77% | 7.16% | 6.41% | 4.30% |
| Feb 26, 2005 | 3.59% | 4.23% | 6.84% | 5.97% | 4.45% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Best Buy Co. Inc., net profit margin, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 4.74% | 3.14% |
| Jan 30, 2021 | 3.80% | 7.21% |
| Feb 1, 2020 | 3.53% | 6.58% |
| Feb 2, 2019 | 3.41% | 5.63% |
| Feb 3, 2018 | 2.37% | 5.65% |
| Jan 28, 2017 | 3.12% | 4.42% |
| Jan 30, 2016 | 2.27% | 4.52% |
| Jan 31, 2015 | 3.06% | 4.30% |
| Feb 1, 2014 | 1.25% | 3.85% |
| Feb 2, 2013 | -0.98% | 3.85% |
| Mar 3, 2012 | -2.43% | 3.50% |
| Feb 26, 2011 | 2.54% | 3.92% |
| Feb 27, 2010 | 2.65% | 4.06% |
| Feb 28, 2009 | 2.23% | 3.83% |
| Mar 1, 2008 | 3.52% | 5.27% |
| Mar 3, 2007 | 3.83% | 5.93% |
| Feb 25, 2006 | 3.70% | 6.26% |
| Feb 26, 2005 | 3.59% | 6.17% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).
Comparison to Industry (Consumer Discretionary)
Best Buy Co. Inc., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 29, 2022 | 4.74% | 5.02% |
| Jan 30, 2021 | 3.80% | 9.12% |
| Feb 1, 2020 | 3.53% | 5.18% |
| Feb 2, 2019 | 3.41% | 5.92% |
| Feb 3, 2018 | 2.37% | 6.19% |
| Jan 28, 2017 | 3.12% | 4.38% |
| Jan 30, 2016 | 2.27% | 5.77% |
| Jan 31, 2015 | 3.06% | 6.37% |
| Feb 1, 2014 | 1.25% | 4.66% |
| Feb 2, 2013 | -0.98% | 5.29% |
| Mar 3, 2012 | -2.43% | 5.32% |
| Feb 26, 2011 | 2.54% | 8.80% |
| Feb 27, 2010 | 2.65% | 5.80% |
| Feb 28, 2009 | 2.23% | 4.94% |
| Mar 1, 2008 | 3.52% | 0.22% |
| Mar 3, 2007 | 3.83% | 3.23% |
| Feb 25, 2006 | 3.70% | 0.73% |
| Feb 26, 2005 | 3.59% | 4.49% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-KT (reporting date: 2013-02-02), 10-K (reporting date: 2012-03-03), 10-K (reporting date: 2011-02-26), 10-K (reporting date: 2010-02-27), 10-K (reporting date: 2009-02-28), 10-K (reporting date: 2008-03-01), 10-K (reporting date: 2007-03-03), 10-K (reporting date: 2006-02-25), 10-K (reporting date: 2005-02-26).