The following table provides ROA and ROCE for Best Buy, a retailer of consumer electronics.

The adjusted February 3, 2018, amounts exclude the one-time income statement effect of the Tax Cuts and Jobs Act.

Required:

1. In analyzing Best Buy, is it most appropriate to use the actual results for the year ended February 3, 2018, or the adjusted results?

2. How did Best Buy’s performance change over the period shown?

3. What is the most likely reason the change in ROCE was so much greater than the change in ROA?

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Best Buy Year Ended January 20, 2016 January 28, 2017 February 3, 2018 Adjusted February 3, 2018 ROA 6.6% 9.3% 7.8% 9.9% ROCE 19.1% 27.0% 24.0% 30.8%