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Best Buy SWOT Analysis Best Thesis

"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.

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

Financial Ratio Analysis
(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

Sources used in this document:
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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