Operating Profit Margin
since 2005
Calculation
Best Buy Co. Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 5.87% | = | 100 | × | 3,039) | ÷ | 51,761) |
| Jan 30, 2021 | 5.06% | = | 100 | × | 2,391) | ÷ | 47,262) |
| Feb 1, 2020 | 4.60% | = | 100 | × | 2,009) | ÷ | 43,638) |
| Feb 2, 2019 | 4.43% | = | 100 | × | 1,900) | ÷ | 42,879) |
| Feb 3, 2018 | 4.37% | = | 100 | × | 1,843) | ÷ | 42,151) |
| Jan 28, 2017 | 4.71% | = | 100 | × | 1,854) | ÷ | 39,403) |
| Jan 30, 2016 | 3.48% | = | 100 | × | 1,375) | ÷ | 39,528) |
| Jan 31, 2015 | 3.59% | = | 100 | × | 1,450) | ÷ | 40,339) |
| Feb 1, 2014 | 2.69% | = | 100 | × | 1,140) | ÷ | 42,410) |
| Feb 2, 2013 | -0.28% | = | 100 | × | (125) | ÷ | 45,085) |
| Mar 3, 2012 | 2.14% | = | 100 | × | 1,085) | ÷ | 50,705) |
| Feb 26, 2011 | 4.21% | = | 100 | × | 2,114) | ÷ | 50,272) |
| Feb 27, 2010 | 4.50% | = | 100 | × | 2,235) | ÷ | 49,694) |
| Feb 28, 2009 | 4.15% | = | 100 | × | 1,870) | ÷ | 45,015) |
| Mar 1, 2008 | 5.40% | = | 100 | × | 2,161) | ÷ | 40,023) |
| Mar 3, 2007 | 5.56% | = | 100 | × | 1,999) | ÷ | 35,934) |
| Feb 25, 2006 | 5.33% | = | 100 | × | 1,644) | ÷ | 30,848) |
| Feb 26, 2005 | 5.26% | = | 100 | × | 1,442) | ÷ | 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 operational performance from 2005 to 2022 is characterized by three distinct phases: initial stability, a period of significant margin compression and contraction, and a subsequent robust recovery leading to record-high profitability levels.
- Initial Stability and Growth (2005–2008)
- Operating profit margins remained consistently between 5.26% and 5.56% during this interval. This period was marked by a steady increase in revenue, which grew from US$ 27.4 billion in 2005 to over US$ 40 billion in 2008, while maintaining a stable conversion of sales into operating income.
- Operational Decline and Trough (2009–2013)
- A notable downward trend in profitability is observed starting in 2009. Despite revenue continuing to rise and peaking at US$ 50.7 billion in 2012, the operating profit margin suffered a severe contraction, falling to 2.14% in 2012 and bottoming out at -0.28% in 2013. The transition to a negative operating margin in 2013, coinciding with an operating loss of US$ 125 million, indicates a period of critical misalignment between revenue generation and cost structures.
- Turnaround and Margin Recovery (2014–2017)
- A recovery phase began in 2014, with operating profit margins returning to positive territory at 2.69%. During this period, revenue figures contracted or plateaued, decreasing from US$ 42.4 billion in 2014 to approximately US$ 39.4 billion by 2016. However, the operating profit margin increased steadily to 4.71% by 2017, suggesting a strategic focus on cost optimization and operational efficiency over absolute volume growth.
- Accelerated Growth and Peak Performance (2018–2022)
- The final period is defined by synchronized growth in both top-line revenue and bottom-line efficiency. Revenue expanded from US$ 42.1 billion in 2017 to US$ 51.7 billion in 2022. Simultaneously, the operating profit margin climbed to 5.87% by January 2022, representing the highest margin recorded in the analysis. Operating income reached a peak of US$ 3.039 billion, demonstrating a successful scaling of the business model and improved operational leverage.
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Comparison to Competitors
Best Buy Co. Inc., operating profit margin, long-term trends, comparison to competitors
| Best Buy Co. Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | |
|---|---|---|---|---|
| Jan 29, 2022 | 5.87% | 2.38% | 15.24% | 12.56% |
| Jan 30, 2021 | 5.06% | 5.30% | 13.84% | 10.77% |
| Feb 1, 2020 | 4.60% | 5.93% | 14.37% | 8.75% |
| Feb 2, 2019 | 4.43% | 5.18% | 14.35% | 5.63% |
| Feb 3, 2018 | 4.37% | 5.33% | 14.55% | 9.60% |
| Jan 28, 2017 | 4.71% | 2.31% | 14.19% | 8.99% |
| Jan 30, 2016 | 3.48% | 3.08% | 13.30% | 8.41% |
| Jan 31, 2015 | 3.59% | 2.09% | 12.59% | 8.52% |
| Feb 1, 2014 | 2.69% | 0.20% | 11.63% | 0.00% |
| Feb 2, 2013 | -0.28% | 1.00% | 10.39% | 0.00% |
| Mar 3, 2012 | 2.14% | 1.11% | 9.46% | 0.00% |
| Feb 26, 2011 | 4.21% | 1.79% | 8.59% | 0.00% |
| Feb 27, 2010 | 4.50% | 4.11% | 7.26% | 0.00% |
| Feb 28, 2009 | 4.15% | 4.61% | 6.11% | 0.00% |
| Mar 1, 2008 | 5.40% | 4.39% | 9.36% | 0.00% |
| Mar 3, 2007 | 5.56% | 4.42% | 10.65% | 0.00% |
| Feb 25, 2006 | 5.33% | 3.63% | 11.49% | 0.00% |
| Feb 26, 2005 | 5.26% | 5.09% | 10.84% | 0.00% |
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).