Best Buy Co. Inc. (NYSE:BBY)

Total Asset Turnover

The reported total asset turnover ratio showed an initial increase from 2.84 in early 2017 to a peak of 3.32 in early 2019, followed by a decline to 2.48 in early 2021, before recovering to 2.96 by early 2022. The adjusted total asset turnover trend closely mirrors this pattern, with a gradual increase until 2020, a dip in 2021, and a rebound in 2022, indicating fluctuations in asset utilization efficiency over the period.

Current Ratio

Reported current ratio exhibits a declining trend from 1.48 in 2017 to 0.99 in 2022, reflecting a decrease in liquidity. The adjusted current ratio also declined from 1.58 to 1.11 in the same timeframe, suggesting a consistent decrease in the firm's capacity to cover short-term liabilities with current assets, albeit remaining slightly above one in adjusted terms by 2022.

Debt to Equity

The reported debt to equity ratio rose from 0.29 in 2017 to a peak of 0.42 in 2019, declined to 0.3 in 2021, then increased again to 0.41 in 2022. The adjusted ratio remained higher throughout, increasing to 1.07 in 2019, then tapering to 0.75 in 2021 before rising back to 0.95 in 2022. This reflects moderate volatility in leverage levels, with adjusted figures indicating a generally higher leverage position relative to reported figures.

Debt to Capital

Both reported and adjusted debt to capital ratios followed similar patterns. The reported ratio increased from 0.22 in 2017 to 0.3 in 2019, then declined to 0.23 in 2021 before rising to 0.29 in 2022. The adjusted ratio moved from 0.45 to a high of 0.52 in 2019, then declined to 0.43 in 2021 and rebounded to 0.49 in 2022, indicating varying reliance on debt financing over time.

Financial Leverage

Reported financial leverage showed a steady rise from 2.94 in 2017 to 5.8 in 2022, more than doubling over the period. Adjusted financial leverage increased from 3.3 to reach 4.2 in 2022, with a slight dip around 2020-2021. These trends indicate increased use of debt and other liabilities to finance assets, with reported leverage growing more sharply than adjusted leverage.

Net Profit Margin

The reported net profit margin fluctuated, starting at 3.12% in 2017, dipping to 2.37% in 2018, then rising steadily to 4.74% in 2022. Adjusted net profit margin followed a similar trajectory but exhibited a somewhat smoother increase, peaking at 5.26% in 2022. This indicates improved profitability and operational efficiency in recent years.

Return on Equity (ROE)

Reported ROE showed significant volatility, increasing from 26.08% in 2017 to over 44% in 2019-2020, then declining to 39.2% in 2021 before a sharp rise to 81.26% in 2022. Adjusted ROE trends were somewhat more stable, rising steadily until 2020, moderating in 2021, and then increasing to 65.89% by 2022. This suggests an overall enhancement in shareholder returns, particularly marked in the latest year.

Return on Assets (ROA)

Reported ROA rose from 8.86% in 2017 to a peak of 11.35% in 2019, decreased to 9.43% in 2021, then increased notably to 14.02% in 2022. The adjusted ROA showed a steadier upward trend, moving from 8.96% to 15.67% over the period, reflecting improving efficiency in asset utilization to generate earnings.

The financial data reveals a consistent upward trajectory in revenue over the six-year period, increasing from $39,403 million in 2017 to $51,761 million in 2022. This steady growth indicates a positive trend in the company’s ability to generate sales.

Total assets exhibit some fluctuation; beginning at $13,856 million in 2017, declining slightly until 2019, then rising significantly to a peak of $19,067 million in 2021 before decreasing again to $17,504 million in 2022. This variability suggests periods of asset expansion and consolidation.

The reported total asset turnover ratio shows a downward trend overall, starting at 2.84 in 2017, peaking at 3.32 in 2019, then declining to 2.48 in 2021 before a slight recovery to 2.96 in 2022. These figures imply fluctuations in how efficiently the company utilizes its assets to generate revenue, with some erosion in efficiency particularly after 2019.

When considering adjusted revenue and adjusted total assets, a similar pattern emerges. Adjusted revenue grows steadily from $39,464 million in 2017 to $52,153 million in 2022, confirming the company’s consistent sales expansion. Adjusted total assets remain relatively stable between 2017 and 2020, with a marked increase in 2021 and a slight decline in 2022, mirroring the trend in reported total assets.

The adjusted total asset turnover ratio follows a comparable pattern to the reported figure: an increase from 2.44 in 2017 to 2.80 by 2020, indicating improved asset utilization efficiency, followed by a drop to 2.49 in 2021 and a rebound to 2.98 in 2022. This suggests that after a period of reduced efficiency, the company improved its asset usage effectiveness by 2022.

Overall, the data indicate strong revenue growth accompanied by variability in asset levels and asset turnover efficiency. While total assets expanded significantly in 2021, this was accompanied by a temporary deterioration in asset turnover ratios, implying increased asset bases that were not immediately converted into proportional revenue gains. The rebound in asset turnover ratios by 2022 suggests a recovery in operational efficiency.

Revenue Growth

Steady increase from $39,403 million to $51,761 million over six years, reflecting consistent sales expansion.

Total Assets

Fluctuation with an initial decline until 2019, then a substantial increase in 2021 followed by a decrease in 2022, indicating changes in asset management or investment strategy.

Reported Total Asset Turnover

Generally decreasing trend post-2019 with a recovery in 2022, signifying variable asset utilization efficiency.

Adjusted Revenue and Assets

Adjusted figures mirror reported data, confirming reliability of observed trends with growth in revenue and fluctuations in asset base.

Adjusted Total Asset Turnover

Improvement until 2020, slump in 2021, and recovery in 2022, consistent with reported turnover trends, highlighting operational efficiency changes.

The financial data exhibits notable trends in liquidity metrics over the six-year period examined. A general decline in both reported and adjusted current ratios is observed, indicating a gradual tightening of short-term liquidity.

Current Assets

The current assets showed a fluctuating pattern with an initial decrease from 10,516 million USD in early 2017 to a low of 8,857 million USD by early 2020. There was a significant recovery to 12,540 million USD by early 2021, followed by a drop back to 10,539 million USD in early 2022. This volatility suggests shifts in working capital management or inventory levels across these years.

Current Liabilities

Current liabilities generally increased over the period, rising steadily from 7,122 million USD in 2017 to 10,674 million USD in 2022. The consistent increase in liabilities relative to assets contributed to the compression in liquidity ratios.

Reported Current Ratio

The reported current ratio declined from a relatively healthy 1.48 in 2017 to below 1.0 at 0.99 in 2022. This downward trend reflects a diminishing buffer of current assets over current liabilities, which could raise concerns about the company's ability to meet short-term obligations without additional liquidity sources.

Adjusted Current Assets and Liabilities

Adjusted figures, which presumably account for certain operational or non-cash items, follow a similar trajectory to the reported data, albeit at slightly higher levels for assets and lower for liabilities. Adjusted current assets rose from 10,568 million USD to a peak of 12,578 million USD in 2021 and then receded to 10,578 million USD in 2022. Adjusted current liabilities escalated from 6,704 million to 9,571 million USD over the period.

Adjusted Current Ratio

Despite being consistently higher than the reported ratios, the adjusted current ratio also declined from 1.58 to 1.11. This indicates that even after adjustments, the company's liquidity position weakened over time, though it did not fall below the critical threshold of 1.0 until the final year when considering the reported ratio.

In summary, the data suggests a tightening liquidity position, with increasing current liabilities outpacing growth in current assets after 2020, resulting in reduced current ratios. This trend could signal increased liquidity risk and underscores the importance of careful cash and working capital management going forward.

Total Debt

Total debt shows a general stability with minor fluctuations over the six-year period. It started at $1,365 million in 2017 and declined moderately to $1,229 million by 2022. The highest value was observed in 2019 at $1,388 million, indicating a slight increase before a subsequent downward trend towards 2022.

Total Shareholders’ Equity

Shareholders’ equity exhibits noticeable variability throughout the period. It decreased significantly from $4,709 million in 2017 to a low of $3,020 million in 2022, with a marked dip occurring between 2017 and 2019. There was a temporary recovery to $4,587 million in 2021 before another decline in the final year.

Reported Debt to Equity Ratio

The reported debt to equity ratio fluctuates consistently, initially rising from 0.29 in 2017 to 0.42 in 2019, suggesting an increased leverage position during this time. This ratio then decreases to 0.30 in 2021, indicating deleveraging, followed by a rise again to 0.41 in 2022. These movements reveal a cyclical adjustment in reported leverage, aligning broadly with the changes in shareholders’ equity and total debt.

Adjusted Total Debt

Adjusted total debt remains relatively steady around the $4,000 million mark, with minor oscillations through the years. It marginally increased from $3,940 million in 2017 to a peak of $4,082 million in 2021, then dropped slightly to $3,938 million in 2022. This indicates a stable adjusted debt position with minor short-term adjustments.

Adjusted Total Shareholders’ Equity

The adjusted total shareholders’ equity shows greater volatility compared to total equity. It declined from $4,896 million in 2017 to $3,728 million in 2019, then rebounded substantially to $5,443 million in 2021 before falling again to $4,166 million in 2022. This pattern reflects cyclical changes and indicates periods of equity strengthening and weakening when adjusted for additional factors.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio indicates significant variation and somewhat mirrors equity movements. It increased from 0.80 in 2017 to a peak of 1.07 in 2019, reflecting relatively higher debt compared to equity. Then it declined to 0.75 in 2021, signaling improved equity coverage, before rising again to 0.95 in 2022. This suggests fluctuating leverage with periodic improvements and setbacks in the company's capital structure.

Total Debt

The total debt exhibited minor fluctuations over the periods, starting at $1,365 million in early 2017 and slightly decreasing to $1,229 million by early 2022. The peak value within this interval was $1,388 million in early 2019, followed by a general declining trend towards the end of the timeframe.

Total Capital

Total capital showed variability with no clear linear trend. It began at $6,074 million in 2017, dropped to its lowest point of $4,249 million in 2022 after fluctuating through the intervening years. Notably, there was a significant decline between 2017 and 2019, a partial recovery in 2021, and then another decrease in 2022.

Reported Debt to Capital Ratio

The reported debt to capital ratio demonstrated moderate oscillations, rising from 0.22 in 2017 to a peak of 0.30 in 2019. It then declined to 0.23 by 2021 before increasing again to 0.29 in 2022. This indicates some variability in the company's leverage relative to reported capital but generally maintained a range between 0.22 and 0.30.

Adjusted Total Debt

The adjusted total debt remained relatively stable throughout the period, hovering around $4,000 million with slight variability. It started at $3,940 million in 2017, peaked slightly at $4,082 million in 2021, and ended close to its initial level at $3,938 million in 2022, suggesting consistency in the broader measure of debt.

Adjusted Total Capital

Adjusted total capital experienced a decreasing trend overall, from $8,836 million in 2017 to $8,104 million in 2022. The value dipped to a minimum of $7,731 million in 2019 but showed some recovery in 2021 reaching $9,525 million before dropping again in 2022. Such fluctuations point to changes in the base of adjusted capital that are more pronounced than in reported capital.

Adjusted Debt to Capital Ratio

This ratio ranged between 0.43 and 0.52, indicating a moderate to high level of leverage when considering adjusted figures. It increased from 0.45 in 2017 to a high of 0.52 in 2019, followed by a decrease to 0.43 in 2021 and then a rise to 0.49 in 2022. These shifts reflect variations in the relationship between adjusted debt and capital, with the highest leverage observed around 2019.

Total Assets

Total assets exhibited fluctuations during the observed periods. Initially, there was a decline from US$13,856 million in 2017 to US$12,901 million in 2019, followed by a significant increase to US$19,067 million in 2021. This peak was succeeded by a reduction to US$17,504 million by 2022, indicating variability in asset base management over time.

Total Shareholders’ Equity

The shareholders’ equity demonstrated a downward trend from 2017 to 2019, decreasing from US$4,709 million to US$3,306 million. A slight recovery occurred in 2020 and 2021, peaking at US$4,587 million, before a sharp decline to US$3,020 million in 2022. This suggests challenges in equity growth or possible capital adjustments in recent years.

Reported Financial Leverage

Reported financial leverage, calculated as the ratio of total assets to shareholders’ equity, showed a consistent increasing trend from 2.94 in 2017 to 4.48 in 2020, indicating a growing reliance on debt or liabilities relative to equity. Although there was a minor decrease in 2021 to 4.16, leverage rose markedly to 5.8 in 2022, highlighting increased financial risk or leverage in the most recent period.

Adjusted Total Assets

The adjusted total assets closely mirrored the reported total assets with overall stability from 2017 through 2020, fluctuating modestly around US$15,000 million. A significant increase to US$19,088 million was recorded in 2021, followed by a decrease to US$17,518 million in 2022, reflecting adjustments that enhance the understanding of asset valuation or classification.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity followed a similar pattern to reported equity but at slightly higher levels. It declined from US$4,896 million in 2017 to US$3,728 million in 2019, then increased steadily to US$5,443 million in 2021 before falling to US$4,166 million in 2022. This indicates revisions enhancing equity figures but maintaining the general trend of volatility.

Adjusted Financial Leverage

This metric initially increased from 3.3 in 2017 to 4.15 in 2019, suggesting increased leverage. Subsequently, it decreased to 3.51 in 2021, indicating deleveraging, before rising again to 4.2 in 2022. This pattern implies fluctuations in the company’s capital structure when considering adjustments, with tentative deleveraging efforts interrupted by higher leverage in the last period.

The financial data indicates an overall positive trajectory in key performance metrics over the six-year period analyzed.

Net Earnings

Net earnings grew steadily from US$1,228 million in 2017 to US$2,454 million in 2022, more than doubling during this timeframe. Although there was a dip in 2018 to US$1,000 million, the subsequent years show consistent growth, reaching the highest level in 2022.

Revenue

Revenue showed a continuous upward trend, increasing from approximately US$39.4 billion in 2017 to US$51.8 billion in 2022. The growth rate appears moderate but steady year over year, indicating a stable expansion of the company's top line.

Reported Net Profit Margin

The reported net profit margin exhibited improvement overall, starting at 3.12% in 2017, dropping to a low of 2.37% in 2018, then progressively increasing each year thereafter to reach 4.74% in 2022. This reflects improved profitability relative to revenue over the period.

Adjusted Net Earnings

Adjusted net earnings closely mirror the trend in reported net earnings but start at a slightly higher base and consistently maintain greater values. Adjusted earnings rose from US$1,448 million in 2017 to US$2,745 million in 2022, showing a similar growth pattern and confirming underlying earnings strength.

Adjusted Revenue

Adjusted revenue data are almost parallel to reported revenue figures, increasing from US$39.5 billion in 2017 to US$52.2 billion in 2022. The similarity between reported and adjusted revenue suggests limited differences in accounting treatment impacting total revenue recognition.

Adjusted Net Profit Margin

This margin shows a notably steady increase from 3.67% in 2017 to 5.26% in 2022. The adjusted net profit margin consistently exceeds the reported net profit margin each year, indicating that adjustments made for exceptional or non-recurring items have a positive impact on perceived profitability.

In summary, the company demonstrates strong financial growth characterized by expanding revenues and improving profitability margins. The adjustments made to net earnings and revenue provide a clearer picture of operational performance, with adjusted margins showing a consistent upward trend. This suggests effective management of costs and improvement in earnings quality over the analyzed period.

Net Earnings

Net earnings exhibited an overall upward trend from 2017 to 2022, increasing from $1,228 million to $2,454 million. A slight dip occurred in 2018, but subsequent years showed consistent growth, reaching the highest value in 2022.

Total Shareholders’ Equity

Total shareholders’ equity decreased from $4,709 million in 2017 to $3,020 million in 2022, with fluctuations across the years. Notably, equity declined sharply between 2017 and 2019, experienced a moderate recovery by 2021, and then dropped again by 2022.

Reported Return on Equity (ROE)

The reported ROE showed considerable volatility but an overall increasing trend. Starting at 26.08% in 2017, it rose steadily to over 44% in 2019 and 2020, saw a slight decline in 2021, and then surged dramatically to 81.26% in 2022, indicating significantly enhanced profitability relative to equity.

Adjusted Net Earnings

Adjusted net earnings followed a similar upward trend as net earnings, increasing from $1,448 million in 2017 to $2,745 million in 2022. Growth was consistent except for a minor decrease in 2018, with the highest recorded figure in 2022.

Adjusted Total Shareholders’ Equity

Adjusted total shareholders’ equity showed a downward trend at the start, falling from $4,896 million in 2017 to $3,728 million in 2019, then rebounding to a peak of $5,443 million in 2021 before decreasing again to $4,166 million in 2022. These fluctuations suggest changes in accounting adjustments or equity restructuring during the period.

Adjusted Return on Equity (ROE)

The adjusted ROE exhibited a generally positive trend, rising from 29.58% in 2017 to 65.89% in 2022. It increased steadily through 2020, with a slight dip in 2021 before a significant surge in 2022. This pattern mirrors the reported ROE, reflecting improved efficiency in generating earnings from shareholders' equity when adjusted for certain factors.

Summary Insights

Despite the decline in shareholders’ equity, both reported and adjusted earnings increased substantially over the period, resulting in markedly higher ROE figures by 2022. The sharp rise in ROE, especially in 2022, indicates a substantially higher profitability relative to the equity base. Fluctuations in equity levels suggest possible strategic financial management actions or adjustments impacting reported values. Overall, the company demonstrated strong earnings growth and improved returns to shareholders over the analyzed years.

Net Earnings

Net earnings showed an overall upward trend during the periods analyzed. Starting at 1,228 million US dollars in early 2017, earnings experienced a slight decline in 2018 but increased steadily thereafter, reaching 2,454 million US dollars in early 2022. This represents a significant growth in profitability over the six-year span.

Total Assets

Total assets fluctuated over the periods with an initial decrease from 13,856 million US dollars in early 2017 to 12,901 million US dollars in early 2019. A notable increase followed in 2020, peaking at 19,067 million US dollars in early 2021, before falling to 17,504 million US dollars in early 2022. This pattern suggests a phase of asset expansion followed by a moderate reduction.

Reported Return on Assets (ROA)

The reported ROA demonstrated variability with a decline from 8.86% in 2017 to 7.66% in 2018, then rising sharply to 11.35% in 2019. A slight decrease occurred in the subsequent two years, but the ratio increased notably to 14.02% in 2022. The ROA trend indicates improving efficiency in asset utilization over time, especially in the last period.

Adjusted Net Earnings

Adjusted net earnings also rose consistently across the years, starting at 1,448 million US dollars in 2017 and increasing to 2,745 million US dollars in 2022. The adjustments appear to smooth some fluctuations seen in reported earnings, reflecting enhanced profitability over the timeline.

Adjusted Total Assets

Adjusted total assets shifted similarly to the reported total assets but at generally higher levels. Starting at 16,166 million US dollars in 2017, these assets experienced a slight decline until 2019, remained relatively stable around 15,600 million US dollars through 2020, and then increased to 19,088 million US dollars in 2021 before falling slightly to 17,518 million US dollars in 2022. This consistency in adjustment suggests a methodical approach to asset valuation.

Adjusted Return on Assets (Adjusted ROA)

Adjusted ROA shows a pattern of improvement with a slight dip from 8.96% in 2017 to 7.71% in 2018, followed by an upward trajectory to 9.16% in 2019 and further gains to 15.67% in 2022. The adjusted ROA consistently remains above its reported counterpart, highlighting stronger asset profitability when adjustments are considered.