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"Bricks-and-mortar" vs. "clicks-and-mortar": An equilibrium analysis. " European Journal of Operational Research 187.3 (2008): 671.
Bala Chakravarthy, Peter Lorange. "Continuous renewal, and how Best Buy did it. " Strategy & Leadership 35.6 (2007): 4-11. Financial Ratio Analysis
Elizabeth Gibson, Andy Billings. "Best practices at Best Buy: a turnaround strategy " The Journal of Business Strategy 24.6 (2003): 10-16.
Erik Gruenwedel. "Best Buy Q4 Sales Grow, Profit Dips. " Home Media Magazine 30 Mar. 2009: 3.
James B. Kohnen "Big Change at Best Buy: Working Through Hypergrowth to Sustained Excellence." The Quality Management Journal 11.3 (2004): 69.
Bill Stopper. "Best Buy: Customer-Centric Innovation" HR. Human Resource Planning 29.3 (2006): 34-36
Greg Todd. "Retailers Using Analytics are Outperforming Rivals. " DM Review 18.6 (2008): 35.
Appendix
Table 1: Best Buy Income Statement Analysis
(2005 -- 2009)
2/28/2009
3/1/2008
3/3/2007
2/25/2006
2/26/2005
Revenue
$45,015,000
$40,023,000
$35,934,000
$30,848,000
$27,433,000
Cost of goods sold
$34,017,000
$30,477,000
$27,165,000
$23,122,000
$20,938,000
Gross profit
$10,998,000
$9,546,000
$8,769,000
$7,726,000
$6,495,000
Selling, general & administrative expenses
$8,984,000
$7,385,000
$6,770,000
$6,082,000
$5,053,000
Restructuring charges
$78,000
Goodwill & tradename impairment
$66,000
Operating income (loss)
$1,870,000
$2,161,000
$1,999,000
$1,644,000
$1,442,000
Investment income & other
$35,000
$129,000
Investment impairment
$111,000
Interest income
$142,000
$103,000
$45,000
Interest expense
$31,000
$30,000
$44,000
Dividend income
$4,000
Total interest income (expense)
$1,000
Net interest income (expense)
$111,000
$77,000
$1,000
Interest expense
$94,000
$62,000
Gain on investments
$20,000
Net earnings (loss)
$1,003,000
$1,407,000
$1,377,000
$1,140,000
$984,000
Total number of employees
155,000
150,000
140,000
128,000
(2005 -- 2009)
Profitability Ratios
2/28/2009
3/1/2008
3/3/2007
2/25/2006
2/26/2005
ROA % (Net)
7.04
10.72
10.65
10.32
10.42
ROE % (Net)
22.04
26.41
23.65
23.56
25.07
ROI % (Operating)
31.5
35.67
30.96
30.24
31.03
EBITDA Margin %
5.75
7.17
7.04
6.81
6.93
Calculated Tax Rate %
39.65
36.58
35.31
33.76
35.27
Revenue per Employee
$291,217
$267,553
$252,520
$241,662
$252,370
Liquidity Indicators
Quick Ratio
0.28
0.29
0.28
0.2
0.17
Current Ratio
0.97
1.08
1.44
1.32
1.39
Net Current Assets % TA
-1.54
4.49
20.49
16.26
18.88
Debt Management
LT Debt to Equity
0.24
0.14
0.1
0.03
0.12
Total Debt to Equity
0.42
0.18
0.1
0.11
0.13
Interest Coverage
19.89
34.85
Asset Management
Total Asset Turnover
3.16
3.05
2.78
2.79
2.9
Receivables Turnover
37.35
73.17
67.08
70.22
76.62
Inventory Turnover
9.54
9.19
9.6
10
10.08
Accounts Payable Turnover
9.71
9.75
9.86
10.21
10.27
Accrued Expenses Turnover
23.3
22.53
18.87
17.24
18.64
Property Plant & Equip Turnover
12.07
12.85
12.51
11.95
11.69
Cash & Equivalents Turnover
46.63
30.37
37.49
53.75
17.92
Cash Flow per Share
4.56
4.62
3.6
3.47
3.78
Book Value per Share
References
Fernando Bernstein, Jing-Sheng Song, Xiaona Zheng. "Bricks-and-mortar" vs. "clicks-and-mortar": An equilibrium analysis. " European Journal of Operational Research 187.3 (2008): 671.
Bala Chakravarthy, Peter Lorange. "Continuous renewal, and how Best Buy did it. " Strategy & Leadership 35.6 (2007): 4-11.
Elizabeth Gibson, Andy Billings. "Best practices at Best Buy: a turnaround strategy " The Journal of Business Strategy 24.6 (2003): 10-16.
Erik Gruenwedel. "Best Buy Q4 Sales Grow, Profit Dips. " Home Media Magazine 30 Mar. 2009: 3.
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