Colorado State University Ratio Analysis and Interpretation Worksheet
Use the following tables to complete the critical thinking assignment.
Best Buy Co., Inc.
Income Statement
2/3/20181/28/20171/30/20161/31/2015RevenueTotal Revenue42,151,00039,403,00039,528,00040,339,000Cost of Revenue32,275,00029,963,00030,334,00031,292,000Gross Profit9,876,0009,440,0009,194,0009,047,000Operating ExpensesSelling General and Administrative7,911,0007,493,0007,612,0007,550,000Operating Income or Loss1,965,0001,947,0001,582,0001,497,000Income from Continuing OperationsAdd Total Other Income/Expenses Net-148,000-131,000-272,000-110,000Interest Expense75,00072,00080,00090,000Income Before Tax1,742,0001,744,0001,230,0001,297,000Income Tax Expense818,000609,000503,000141,000Add Discontinued Operations1,00021,00090,000-13,000Net Income925,0001,156,000817,0001,143,000
Best Buy Co., Inc.
Balance Sheet
2/3/20181/28/20171/30/20161/31/2015Current AssetsCash And Cash Equivalents1,101,0002,240,0001,976,0002,432,000Short Term Investments2,196,0001,848,0001,384,0001,539,000Net Receivables1,049,0001,347,0001,162,0001,280,000Inventory5,209,0004,864,0005,051,0005,174,000Other Current Assets274,000217,000313,0001,047,000Total Current Assets9,829,00010,516,0009,886,00011,472,000Long Term Investments013,00027,0003,000Property Plant and Equipment2,421,0002,293,0002,346,0002,295,000Goodwill425,000425,000425,000425,000Intangible Assets18,00018,00018,00057,000Other Assets356,000591,000817,000993,000Deferred Long Term Asset Charges159,000317,000510,000574,000Total Assets13,049,00013,856,00013,519,00015,245,000Current LiabilitiesAccounts Payable4,873,0004,984,0004,450,0005,030,000Short/Current Long Term Debt499,0000350,0000Other Current Liabilities1,043,000944,000975,0001,609,000Total Current Liabilities7,817,0007,122,0006,925,0007,777,000Long Term Debt648,0001,158,0001,168,0001,492,000Other Liabilities805,000704,000877,000901,000Total Liabilities9,437,0009,147,0009,141,00010,250,000Stockholders’ EquityTotal Stockholder Equity3,612,0004,709,0004,378,0004,995,000
Using the attached financial statements for Best Buy Co., Inc. complete the financial statement analysis and ratio analysis by answering the questions below.
a. Calculate average collection period, total asset turnover, inventory turnover, and days in inventory.
b. Assess the activity of the firm, using your calculations in part a, over the four year period.
c. Calculate the gross profit margin, operating margin, and net profit margin.
d. Assess the profitability of the firm, using your calculations in part c, over the four year period.
