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Best Buy Strategic Financial Analysis

(data in thousands [000s], excluding per share data and financial ratios)
FY end date 31-Jan 31-Jan
FY 2014 FY 2013
Revenue $ 40,339,000 $ 42,410,000
Cost of Revenue 30,636,000 32,268,000
Gross Profit 9,703,000 10,142,000
Gross Profit Margin 0.24 0.24
EBIT 1,455,000 1,070,000
Income Tax 141,000 398,000
NOPAT (Net Operating Profit After Taxes) 1,314,000 672,000
Net Income (includes discontinued operations) $ 1,233,000 $ 532,000

Diluted Weighted Average Shares 353,600 347,600


Dividends per Share 0.72 0.68
Diluted Normalized EPS (includes discontinued operations) 3.49 1.53

Cash Cycle FY 2014 FY 2013


Revenue per day 110,518 116,192
Accounts Receivable 1,280,000 1,308,000
Receivable Days 12 11
Inventory 5,174,000 5,376,000
Inventory Days 47 46
Accounts Payable 5,030,000 5,122,000
Payable Days 46 44
Cash Cycle (days) 13 13

Key Ratios FY 2014 FY 2013


Market Value of Book Equity 12,068,368 7,748,004
Price per share* 34.13 22.29
Earnings per share (includes discontinued operations) 3.49 1.53
P/E Ratio 9.78 14.57
Return on Invested Capital 0.09 0.05
Return on Assets 0.08 0.04
Return on Equity 0.25 0.13
Return on Revenue 0.03 0.01
Total Assets 15,256,000 14,013,000
Current Assets 11,729,000 10,485,000
Current Liabilities 7,777,000 7,436,000
Current Ratio 1.51 1.41
Total Liabilities 10,256,000 10,024,000
Liabilities/Equity Ratio 2.05 2.51
Total Equity (book value) 4,995,000 3,986,000
Shareholders' Equity (minority interests) - -
Market to Book Value 2.42 1.94
Per Employee FY 2014 FY 2013
Number of Employees (continuing operations) 125.0 140.0
Revenue 322.7 302.9
Net Income 9.9 3.8
Market Value 96.5 55.3
Source: S&P Capital IQ Compustat
*Stock Price obtained from Yahoo Finance at close of final day of FY
l Analysis

31-Jan 29-Feb 28-Feb


FY 2012 FY 2011 FY 2010
$ 45,085,000 $ 50,705,000 $ 50,272,000
33,439,000 37,173,000 36,619,000
11,646,000 13,532,000 13,653,000
0.26 0.27 0.27 Use Accounting without dollar sign.
1,148,000 2,350,000 2,336,000
231,000 709,000 714,000
917,000 1,641,000 1,622,000
$ (441,000) $ (1,231,000) $ 1,277,000

338,600 366,300 416,500


0.66 0.62 0.58
(1.31) (3.36) 3.08

FY 2012 FY 2011 FY 2010


123,521 138,918 137,732
2,704,000 2,288,000 2,348,000
22 16 17
6,571,000 5,731,000 5,897,000
53 41 43
6,951,000 5,364,000 4,894,000
56 39 36
19 19 24

FY 2012 FY 2011 FY 2010


5,099,316 8,058,600 11,686,990
15.06 22.00 28.06
(1.31) (3.36) 3.08
(11.50) (6.55) 9.11
0.06 0.11 0.09 Use Accounting without dollar sign.
(0.03) (0.08) 0.07 Use Accounting without dollar sign.
(0.14) (0.33) 0.19 Use Accounting without dollar sign.
(0.01) (0.02) 0.03 Use Accounting without dollar sign.
16,787,000 16,005,000 17,849,000
12,047,000 10,297,000 10,473,000
10,810,000 8,855,000 8,663,000
1.11 1.16 1.21
13,072,000 11,639,000 10,557,000
4.27 3.11 1.60
3,061,000 3,745,000 6,602,000
- - -
1.67 2.15 1.77 Two decimal places for numbers up to 100. At least three significan
FY 2012 FY 2011 FY 2010
165.0 167.0 180.0 Divide # of employees by 1,000. Include at least three significant d
273.2 303.6 279.3 Formula is Revenue/# of employees (B5/B48/1000).
(2.7) (7.4) 7.1 Formula is Net Income/# of employees (B12/B48/1000).
30.9 48.3 64.9 Formula is Market Value of Equity/# employees (B29/B48/1000).
o 100. At least three significant digits.
de at least three significant digits.
B5/B48/1000).
s (B12/B48/1000).
employees (B29/B48/1000).
Best Buy Strategic Financial Analysis
(data in thousands [000s], excluding per share data and financial ratios)
FY end date 31-Jan 31-Dec
FY 2014 Best Buy Amazon
Revenue $ 40,339,000 $ 88,988,000
Cost of Revenue 30,636,000 59,152,000
Gross Profit 9,703,000 29,836,000
Gross Profit Margin 0.24 0.34
EBIT 1,455,000 130,000
Income Tax 141,000 167,000
NOPAT (Net Operating Profit After Taxes) 1,314,000 (37,000)
Net Income (includes discontinued operations) $ 1,233,000 $ (241,000)

Diluted Weighted Average Shares 353,600 462,000


Dividends per Share 0.72 -
Diluted Normalized EPS (includes discontinued operations) 3.49 (0.52)

Cash Cycle Best Buy Amazon


Revenue per day 110,518 243,803
Accounts Receivable 1,280,000 3,300,000
Receivable Days 12 14
Inventory 5,174,000 8,299,000
Inventory Days 47 34
Accounts Payable 5,030,000 16,459,000
Payable Days 46 68
Cash Cycle (days) 13 (20)

Key Ratios Best Buy Amazon


Market Value of Equity 12,068,368 143,381,700
Price per share* 34.13 310.35
Earnings per share (includes discontinued operations) 3.49 (0.52)
P/E Ratio 9.78 (596.83)
Return on Invested Capital 0.09 (0.00)
Return on Assets 0.08 (0.00)
Return on Equity 0.25 (0.02)
Return on Revenue 0.03 (0.00)
Total Assets 15,256,000 54,505,000
Current Assets 11,729,000 31,327,000
Current Liabilities 7,777,000 28,089,000
Current Ratio 1.51 1.12
Total Liabilities 10,256,000 43,764,000
Liabilities/Equity Ratio 2.05 4.07
Total Equity (book value) 4,995,000 10,741,000
Shareholders' Equity (minority interests) - -
Market to Book Value 2.42 13.35
Per Employee Best Buy Amazon
Number of Employees (continuing operations) 125.0 154.1
Revenue 322.7 577.5
Net Income 9.9 (1.6)
Market Value 96.5 930.4
Source: S&P Capital IQ Compustat
*Stock Price obtained from Yahoo Finance at close of final day of FY
l Analysis

30-Sep 31-Jan 31-Jan


Apple Target Walmart
$ 182,795,000 $ 72,618,000 $ 483,521,000
104,312,000 51,278,000 355,913,000
78,483,000 21,340,000 127,608,000
0.43 0.29 0.26 Use Accounting without dollar sign.
52,503,000 4,762,000 25,439,000
13,973,000 1,204,000 7,985,000
38,530,000 3,558,000 17,454,000
$ 39,510,000 $ (1,636,000) $ 16,363,000

6,122,663 640,100 3,243,000


1.81 1.90 1.92
6.45 (2.56) 5.05

Apple Target Walmart


500,808 198,953 1,324,715
27,219,000 1,122,000 6,778,000
54 6 5
2,111,000 8,790,000 45,141,000
4 44 34
30,196,000 7,759,000 38,410,000
60 39 29
(2) 11 10

Apple Target Walmart


603,878,252 45,799,155 268,131,240
98.63 71.55 82.68
6.45 (2.56) 5.05
15.29 (27.95) 16.37
0.17 0.09 0.09 Use Accounting without dollar sign.
0.17 (0.04) 0.08 Use Accounting without dollar sign.
0.35 (0.12) 0.20 Use Accounting without dollar sign.
0.22 (0.02) 0.03 Use Accounting without dollar sign.
231,839,000 41,404,000 203,706,000
68,531,000 14,087,000 63,278,000
63,448,000 11,736,000 65,272,000
1.08 1.20 0.97
120,292,000 27,407,000 117,769,000
1.08 1.96 1.45
111,547,000 13,997,000 81,394,000
- - -
5.41 3.27 3.29 Two decimal places for numbers up to 100. At least three significan
Apple Target Walmart
97.0 347.0 2,200.0 Divide # of employees by 1,000. Include at least three significant d
1,884.5 209.3 219.8 Formula is Revenue/# of employees (B5/B48/1000).
407.3 (4.7) 7.4 Formula is Net Income/# of employees (B12/B48/1000).
6,225.5 132.0 121.9 Formula is Market Value of Equity/# employees (B29/B48/1000).
100. At least three significant digits.
e at least three significant digits.
5/B48/1000).
(B12/B48/1000).
mployees (B29/B48/1000).
Level of
Consolida
tion -
Global Company
Company Data Year Industry Annual Populatio Data
Key Data Date - Fiscal Format Descriptor n Source Format
AAPL2010 1690 09/30/2010 2010 INDL C D STD
AAPL2011 1690 09/30/2011 2011 INDL C D STD
AAPL2012 1690 09/30/2012 2012 INDL C D STD
AAPL2013 1690 09/30/2013 2013 INDL C D STD
AAPL2014 1690 09/30/2014 2014 INDL C D STD
AAPL2015 1690 09/30/2015 2015 INDL C D STD
BBY2009 2184 02/28/2010 2009 INDL C D STD
BBY2010 2184 02/28/2011 2010 INDL C D STD
BBY2011 2184 02/29/2012 2011 INDL C D STD
BBY2012 2184 01/31/2013 2012 INDL C D STD
BBY2013 2184 01/31/2014 2013 INDL C D STD
BBY2014 2184 01/31/2015 2014 INDL C D STD
TGT2009 3813 01/31/2010 2009 INDL C D STD
TGT2010 3813 01/31/2011 2010 INDL C D STD
TGT2011 3813 01/31/2012 2011 INDL C D STD
TGT2012 3813 01/31/2013 2012 INDL C D STD
TGT2013 3813 01/31/2014 2013 INDL C D STD
TGT2014 3813 01/31/2015 2014 INDL C D STD
WMT2009 11259 01/31/2010 2009 INDL C D STD
WMT2010 11259 01/31/2011 2010 INDL C D STD
WMT2011 11259 01/31/2012 2011 INDL C D STD
WMT2012 11259 01/31/2013 2012 INDL C D STD
WMT2013 11259 01/31/2014 2013 INDL C D STD
WMT2014 11259 01/31/2015 2014 INDL C D STD
AMZN2010 64768 12/31/2010 2010 INDL C D STD
AMZN2011 64768 12/31/2011 2011 INDL C D STD
AMZN2012 64768 12/31/2012 2012 INDL C D STD
AMZN2013 64768 12/31/2013 2013 INDL C D STD
AMZN2014 64768 12/31/2014 2014 INDL C D STD
Common
Shares
Used to
Calc
Earnings Earnings
ISO Current Accounts Cost of Per Share Before
Ticker Currency Assets - Payable - Assets - Goods - Fully Interest
Symbol Code Total Trade Total Sold Diluted and Taxes
AAPL USD 41678 12015 75183 38609 924.712 18385
AAPL USD 44988 14632 116371 62609 936.645 33790
AAPL USD 57653 21175 176064 84641 945.355 55241
AAPL USD 73286 22367 207000 99849 931.662 48999
AAPL USD 68531 30196 231839 104312 6122.663 52503
AAPL USD 89378 35490 290479 129589 5793.069 71230
BBY USD 10566 5276 18302 36590 427.5 2287
BBY USD 10473 4894 17849 36619 416.5 2336
BBY USD 10297 5364 16005 37173 366.3 2350
BBY USD 12047 6951 16787 33439 338.6 1148
BBY USD 10485 5122 14013 32268 347.6 1070
BBY USD 11729 5030 15256 30636 353.6 1455
TGT USD 18424 6511 44533 44062 754.8 4673
TGT USD 17213 6625 43705 46585 729.4 5252
TGT USD 16449 6857 46630 48306 683.9 5322
TGT USD 16388 7056 48163 51035 663.3 5210
TGT USD 11573 7683 44553 51160 641.8 3972
TGT USD 14087 7759 41404 51278 640.1 4762
WMT USD 48331 30451 170706 297500 3877 22099
WMT USD 51893 33557 180663 307646 3670 23709
WMT USD 54975 36608 193406 326997 3474 24622
WMT USD 59940 38080 203105 343987 3389 26027
WMT USD 61185 37415 204751 349199 3283 25270
WMT USD 63278 38410 203706 355913 3243 25439
AMZN USD 13747 8051 18797 26009 456 1407
AMZN USD 17490 11145 25278 36288 461 867
AMZN USD 21296 13318 32555 44271 453 672
AMZN USD 24625 15133 40159 51681 465 691
AMZN USD 31327 16459 54505 59152 462 130
Earnings
Per Share Noncontr
(Diluted) - olling
Including Current Interest Net
Employee Extraordin Inventorie Liabilities Liabilities (Balance Income Receivabl
s ary Items s - Total - Total - Total Sheet) (Loss) es - Total
49.4 15.15 1051 20722 27392 0 14013 9924
63.3 27.68 776 27970 39756 0 25922 11717
76.1 44.15 791 38542 57854 0 41733 18692
84.4 39.75 1764 43658 83451 0 37037 20641
97 6.45 2111 63448 120292 0 39510 27219
110 9.22 2349 80610 171124 0 53394 30343
180 3.1 5486 8978 11338 0 1317 2020
180 3.08 5897 8663 10557 0 1277 2348
167 -3.36 5731 8855 11639 0 -1231 2288
165 -1.31 6571 10810 13072 0 -441 2704
140 1.53 5376 7436 10024 0 532 1308
125 3.49 5174 7777 10256 0 1233 1280
351 3.3 7179 11327 29186 0 2488 7882
355 4 7596 10070 28218 0 2920 7075
365 4.28 7918 14287 30809 0 2929 6927
361 4.52 7903 14031 31605 0 2999 6857
366 3.07 8766 12777 28322 0 1971 1347
347 -2.56 8790 11736 27407 0 -1636 1122
2100 3.7 33160 55561 97470 307 14335 4144
2100 4.47 36318 58484 109008 408 16389 5089
2200 4.52 40714 62300 117241 404 15699 5937
2200 5.02 43803 71818 120848 519 16999 6768
2200 4.88 44858 69345 121921 1491 16022 6677
2200 5.05 45141 65272 117769 0 16363 6778
33.7 2.53 3202 10372 11933 0 1152 1324
56.2 1.37 4992 14896 17521 0 631 2134
88.4 -0.09 6031 19002 24363 0 -39 2600
117.3 0.59 7411 22980 30413 0 274 3000
154.1 -0.52 8299 28089 43764 0 -241 3300
Active/Ina Dividends
Sales/Tur Stockhold Income ctive per Share
nover ers Equity Taxes - Status - Pay Date
(Net) - Parent Total Marker - Fiscal
65225 47791 4527 A 0
108249 76615 8283 A 0
156508 118210 14030 A 2.65
170910 123549 13118 A 11.4
182795 111547 13973 A 1.8114
233715 119355 19121 A 1.98
49694 6320 802 A 0.56
50272 6602 714 A 0.58
50705 3745 709 A 0.62
45085 3061 231 A 0.66
42410 3986 398 A 0.68
40339 4995 141 A 0.72
65357 15347 1384 A 0.66
67390 15487 1575 A 0.84
69865 15821 1527 A 1.1
73301 16558 1610 A 1.32
72596 16231 1132 A 1.58
72618 13997 1204 A 1.9
406103 70749 7139 A 1.09
420016 68542 7579 A 1.21
444948 71315 7944 A 1.46
467231 76343 7981 A 1.59
474259 76255 8105 A 1.88
483521 81394 7985 A 1.92
34204 6864 352 A 0
48077 7757 291 A 0
61093 8192 428 A 0
74452 9746 161 A 0
88988 10741 167 A 0