Introduction to Best Buy Co. Best Buy Co., Inc. is a multinational retailer, which gives purchaser gadgets, home office items, diversion items, machines and related administrations. The organization works through two business portions: Domestic and International. The Domestic section is contained the operations in all states, locale and domains of the U.S., working under different brand names, including yet not restricted to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster and Pacific Sales. The International section is involved all operations outside the U.S. also, its domains, which incorporates Canada, Europe, China, Mexico and Turkey. The organization additionally markets its items under the brand names: Best Buy, …show more content…
It can be fairly stated that due to these profitability ratios, one can depict the company being profitable for now. The liquidity ratios relate to the Current Ratio (Current Assets/Current Liabilities) being 1.51, which means that the company has $1.51 worth of current asset, to pay off a $1 worth liability. A Quick Ratio (Current Assets-Stocks / Current Liabilities) of 0.84 displays that the company has $0.84 worth of current assets which can be turned into cash when needed for every $1 worth liability. The Cash Ratio which is 0.5 portrays that the company has $0.5 worth of cash and cash equivalents to pay of $1 worth liability. Looking at the liquidity ratios, it can be seen that the company is able to pay off its liabilities quite effectively and hence doesn’t seem to be a bad investment for investors. The Receivables Turnover ratio indicates a 31.17, which means that it’s extension of credits and collection of accounts receivable is efficient. The last ratio, i.e. the Total Asset Turnover ratio implies the amount of revenue the company generates for every $1 worth asset it has. The ratio is at 2.76, which depicts that Best Buy Co. makes an almost 3 times worth revenue than its total assets, which is good for the company. After analyzing Best Buy Co., from an investors point of view, one can state that the company is starting to indulge itself alongside its competitors, but it still needs a lot of progress as its revenues are not certain about growing, i.e., an expected decline can occur at any point as well, but the overall growth exceeds the