Return on Equity (ROE)
since 2005
Calculation
Best Buy Co. Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss)1 | ÷ | Total Best Buy Co., Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 81.26% | = | 100 | × | 2,454) | ÷ | 3,020) |
| Jan 30, 2021 | 39.20% | = | 100 | × | 1,798) | ÷ | 4,587) |
| Feb 1, 2020 | 44.29% | = | 100 | × | 1,541) | ÷ | 3,479) |
| Feb 2, 2019 | 44.28% | = | 100 | × | 1,464) | ÷ | 3,306) |
| Feb 3, 2018 | 27.69% | = | 100 | × | 1,000) | ÷ | 3,612) |
| Jan 28, 2017 | 26.08% | = | 100 | × | 1,228) | ÷ | 4,709) |
| Jan 30, 2016 | 20.49% | = | 100 | × | 897) | ÷ | 4,378) |
| Jan 31, 2015 | 24.68% | = | 100 | × | 1,233) | ÷ | 4,995) |
| Feb 1, 2014 | 13.35% | = | 100 | × | 532) | ÷ | 3,986) |
| Feb 2, 2013 | -14.41% | = | 100 | × | (441) | ÷ | 3,061) |
| Mar 3, 2012 | -32.87% | = | 100 | × | (1,231) | ÷ | 3,745) |
| Feb 26, 2011 | 19.34% | = | 100 | × | 1,277) | ÷ | 6,602) |
| Feb 27, 2010 | 20.84% | = | 100 | × | 1,317) | ÷ | 6,320) |
| Feb 28, 2009 | 21.60% | = | 100 | × | 1,003) | ÷ | 4,643) |
| Mar 1, 2008 | 31.38% | = | 100 | × | 1,407) | ÷ | 4,484) |
| Mar 3, 2007 | 22.21% | = | 100 | × | 1,377) | ÷ | 6,201) |
| Feb 25, 2006 | 21.69% | = | 100 | × | 1,140) | ÷ | 5,257) |
| Feb 26, 2005 | 22.12% | = | 100 | × | 984) | ÷ | 4,449) |
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 financial trajectory from 2005 to 2022 is characterized by an initial period of stability, a significant mid-period contraction, and a subsequent phase of aggressive return acceleration.
- Initial Stability and Performance (2005–2011)
- During this period, return on equity remained relatively consistent, generally fluctuating between 19% and 31%. Net earnings grew steadily from US$ 984 million in 2005 to US$ 1.407 billion in 2008, supported by a gradual increase in total shareholders' equity, which rose from US$ 4.449 billion to a peak of US$ 6.602 billion by 2011.
- Financial Volatility and Contraction (2012–2013)
- A sharp reversal occurred in 2012 and 2013, marked by substantial net losses of US$ 1.231 billion and US$ 441 million, respectively. This caused return on equity to plunge into negative territory, reaching a low of -32.87% in 2012. Concurrently, shareholders' equity declined significantly, dropping to US$ 3.061 billion by 2013.
- Recovery and Normalization (2014–2017)
- A recovery phase began in 2014, with net earnings returning to positive territory at US$ 532 million and expanding to US$ 1.233 billion by 2015. Return on equity normalized, climbing from 13.35% in 2014 to 26.08% by 2016, signaling a restoration of profitability and operational efficiency.
- Aggressive Return Acceleration (2018–2022)
- The final period shows a dramatic increase in return on equity, which escalated from 27.69% in 2018 to 81.26% in 2022. This surge was driven by a combination of increasing net earnings, which reached US$ 2.454 billion, and a simultaneous reduction in total shareholders' equity, which fell to US$ 3.020 billion. The divergence between rising profits and a shrinking equity base indicates a highly optimized capital structure, resulting in an exponential increase in the return generated per unit of equity.
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Comparison to Competitors
Best Buy Co. Inc., ROE, 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 | 81.26% | -1.86% | — | — | 54.69% |
| Jan 30, 2021 | 39.20% | 24.13% | 390.00% | 406.05% | 1.55% |
| Feb 1, 2020 | 44.29% | 22.84% | — | 217.09% | 55.01% |
| Feb 2, 2019 | 44.28% | 18.67% | — | 63.50% | 60.61% |
| Feb 3, 2018 | 27.69% | 23.13% | 593.54% | 58.69% | 50.66% |
| Jan 28, 2017 | 26.08% | 10.95% | 183.64% | 48.07% | 50.95% |
| Jan 30, 2016 | 20.49% | 12.29% | 110.97% | 33.26% | 52.88% |
| Jan 31, 2015 | 24.68% | 4.45% | 68.06% | 27.07% | 51.95% |
| Feb 1, 2014 | 13.35% | -2.24% | 43.00% | 19.29% | 50.53% |
| Feb 2, 2013 | -14.41% | 2.81% | 25.51% | 14.14% | 52.01% |
| Mar 3, 2012 | -32.87% | -0.48% | 21.70% | 11.12% | 46.62% |
| Feb 26, 2011 | 19.34% | 8.13% | 17.67% | 11.10% | 43.33% |
| Feb 27, 2010 | 20.84% | 16.78% | 13.72% | 9.35% | 42.00% |
| Feb 28, 2009 | 21.60% | 17.16% | 12.71% | 12.16% | 41.26% |
| Mar 1, 2008 | 31.38% | 24.14% | 24.81% | 17.45% | 36.21% |
| Mar 3, 2007 | 22.21% | 39.77% | 23.02% | 19.75% | 32.23% |
| Feb 25, 2006 | 21.69% | 44.08% | 21.70% | 19.32% | 36.48% |
| Feb 26, 2005 | 22.12% | 145.93% | 20.70% | 18.86% | 40.17% |
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 Sector (Consumer Discretionary Distribution & Retail)
Best Buy Co. Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Best Buy Co. Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 81.26% | 17.48% |
| Jan 30, 2021 | 39.20% | 35.05% |
| Feb 1, 2020 | 44.29% | 40.86% |
| Feb 2, 2019 | 44.28% | 40.77% |
| Feb 3, 2018 | 27.69% | 44.19% |
| Jan 28, 2017 | 26.08% | 38.11% |
| Jan 30, 2016 | 20.49% | 37.81% |
| Jan 31, 2015 | 24.68% | 32.09% |
| Feb 1, 2014 | 13.35% | 24.32% |
| Feb 2, 2013 | -14.41% | 19.26% |
| Mar 3, 2012 | -32.87% | 15.66% |
| Feb 26, 2011 | 19.34% | 15.30% |
| Feb 27, 2010 | 20.84% | 14.12% |
| Feb 28, 2009 | 21.60% | 14.43% |
| Mar 1, 2008 | 31.38% | 22.32% |
| Mar 3, 2007 | 22.21% | 22.78% |
| Feb 25, 2006 | 21.69% | 21.78% |
| Feb 26, 2005 | 22.12% | 21.81% |
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., ROE, long-term trends, comparison to industry (consumer discretionary)
| Best Buy Co. Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 29, 2022 | 81.26% | 20.78% |
| Jan 30, 2021 | 39.20% | 33.71% |
| Feb 1, 2020 | 44.29% | 24.49% |
| Feb 2, 2019 | 44.28% | 34.62% |
| Feb 3, 2018 | 27.69% | 34.33% |
| Jan 28, 2017 | 26.08% | 22.85% |
| Jan 30, 2016 | 20.49% | 28.74% |
| Jan 31, 2015 | 24.68% | 29.03% |
| Feb 1, 2014 | 13.35% | 20.60% |
| Feb 2, 2013 | -14.41% | 20.34% |
| Mar 3, 2012 | -32.87% | 21.97% |
| Feb 26, 2011 | 19.34% | 34.92% |
| Feb 27, 2010 | 20.84% | 24.34% |
| Feb 28, 2009 | 21.60% | 25.32% |
| Mar 1, 2008 | 31.38% | 1.64% |
| Mar 3, 2007 | 22.21% | 16.06% |
| Feb 25, 2006 | 21.69% | 3.84% |
| Feb 26, 2005 | 22.12% | 19.92% |
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).