Perform ratio analysis using the ratios listed in the chart. (MUST use excel using formulas to calculate each) You should group by category, list name of ratio, formula in words, and ratio in calculation. Give explanation of your conclusions about company after each category of ratio. Example- How liquid is your company? How efficiently is it using its assets? etc

Ratio Formula Measure of Liquidity and Efficiency Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Current assets Short-term debt-paying ability Current liabilities Cash + Short-term investments + Current receivables Immediate short-term debt- Current liabilities paying ability Net sales Efficiency of collection Average accounts receivable, net Cost of goods sold Efficiency of inventory Average inventory management Accounts receivable, net X 365 Liquidity of receivables Net sales Ending inventory X 365 Liquidity of inventory Cost of goods sold Net sales Efficiency of assets in Average total assets producing sales Days' sales uncollected = Days' sales in inventory = Total asset turnover Solvency Debt ratio Creditor financing and leverage Owner financing Equity ratio = Total liabilities Total assets Total equity Total assets Total liabilities Total equity Income before interest expense and income Interest expense Debt-to-equity ratio Debt versus equity financing Times interest earned Protection in meeting interest payments Profitability Profit margin ratio = Net income Net sales Net sales - Cost of goods sold Net sales Net income in each sales dollar Gross margin in each sales dollar Gross margin ratio Consolidated Balance Sheets $ and shares in millions, except per share amounts January 30, 2021 February 1, 2020 5,494 1,061 5,612 373 12,540 2.229 1,149 5,174 305 8.857 Assets Current assets Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Property and equipment Land and buildings Leasehold improvements Fixtures and equipment Property under finance leases Gross property and equipment Less accumulated depreciation Net property and equipment Operating lease assets Goodwill Other assets Total assets 658 2,192 6,333 73 9,256 6,996 2,260 2,612 986 669 19,067 650 2,203 6.286 89 9.228 6.900 2,328 2,709 984 713 15,591 $ $ $ 5.288 281 501 410 906 Liabilities and equity Current liabilities Accounts payable Unredeemed gift card liabilities Deferred revenue Accrued compensation and related expenses Accrued liabilities Short-term debt Current portion of operating lease liabilities Current portion of long-term debt Total current liabilities Long-term operating lease liabilities Long-term liabilities Long-term debt Contingencies and commitments (Note 13) Equity Best Buy Co., Inc. Shareholders' Equity Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none Common stock, $0.10 par value: Authorized - 1.0 billion shares: Issued and outstanding - 257 and 256 shares, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive income Total equity Total liabilities and equity 6,979 317 711 725 972 110 693 14 10,521 2,012 694 1,253 660 14 8,060 2,138 657 1,257 26 26 4,233 328 4,587 19,067 3.158 295 3,479 15,591 See Notes to Consolidated Financial Statements. February 1, 2020 February 2, 2019 1,541 $ 1,464 812 41 143 70 21 770 46 123 10 (25) (131) 237 16 47 (132) (100) 2,565 28 (194) (34) 432 22 (234) 2.408 Consolidated Statements of Cash Flows $ in millions Fiscal Years Ended January 30, 2021 Operating activities Net earnings 1,798 Adjustments to reconcile net earnings to total cash provided by operating activities: Depreciation and amortization 839 Restructuring charges 254 Stock-based compensation 135 Deferred income taxes (36) Other, net 3 Changes in operating assets and liabilities, net of acquired assets and liabilities: Receivables 73 Merchandise inventories (435) Other assets (51) Accounts payable 1,676 Income taxes 173 Other liabilities 498 Total cash provided by operating activities 4.927 Investing activities Additions to property and equipment, net of $32, $10 and $53, respectively, of non-cash capital expenditures (713) Purchases of investments (620) Sales of investments 546 Acquisitions, net of cash acquired Other, net (1) Total cash provided by (used in) investing activities (788) Financing activities Repurchase of common stock (312) Issuance of common stock 28 Dividends paid (568) Borrowings of debt 1,892 Repayments of debt (1.916) Other, net Total cash used in financing activities (876) Effect of exchange rate changes on cash 7 Increase in cash, cash equivalents and restricted cash 3,270 Cash, cash equivalents and restricted cash at beginning of period 2,355 Cash, cash equivalents and restricted cash at end of period $ 5,625 (819) (743) (330) 322 (145) 1 (895) 2,098 (787) 16 508 (1.003) 48 (527) (1,505) 38 (497) 498 (546) (6) (2.018) (15) (1) (1.498) (1) 171 2.184 2.355 (14) 884 1,300 2.184 $ $ Supplemental cash flow information Income taxes paid Interest paid 442 514 62 391 71 A 50 $ See Notes to Consolidated Financial Statements. Consolidated Statements of Comprehensive Income $ in millions February 1, 2020 1,541 Fiscal Years Ended Net earnings Foreign currency translation adjustments, net of tax Cash flow hedges Reclassification of cumulative translation adjustments into earnings due to exit of business Comprehensive income January 30, 2021 1,798 (4) (2) February 2, 2019 1.464 (20) 39 1,831 1.542 1.444 See Notes to Consolidated Financial Statements. Consolidated Statements of Changes in Shareholders' Equity $ and shares in millions, except per share amounts Common Shares 283 Common Stock $ 28 Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) 314 Retained Earnings 3,270 73 1,464 $ $ Total Equity 3.612 73 1,464 (20) 123 38 6 (167) (20) 123 38 (491) (1.493) 3.306 (22) 1.541 (21) 266 (497) (1,325) 2.985 (22) 1.541 (1) 27 294 1 Balances as of February 3, 2018 Adoption of ASU 2014-09 Net earnings Other comprehensive loss: Foreign currency translation adjustments, net of tax Stock-based compensation Issuance of common stock Common stock dividends, $1.80 per share Repurchase of common stock Balances as of February 2, 2019 Adoption of ASU 2016-02 Net earnings Other comprehensive income: Foreign currency translation adjustments, net of tax Stock-based compensation Issuance of common stock Common stock dividends, $2.00 per share Repurchase of common stock Other Balances as of February 1, 2020 Net earnings Other comprehensive income (loss): Foreign currency translation adjustments, net of tax Cash flow hedges Reclassification of cumulative translation adjustments into earnings due to exit of business Stock-based compensation Issuance of common stock Common stock dividends. $2.20 per share Repurchase of common stock Balances as of January 30, 2021 143 48 9 (198) (2) (536) (810) 1 143 48 (527) (1,009) (2) 3,479 1.798 (14) (1) 256 26 295 3,158 1,798 (4) (2) (4) (2) 39 39 135 28 135 28 12 (175) (3) 257 (580) (143) 4,233 (568) (318) 4,587 26 $ 328 $ See Notes to Consolidated Financial Statements. $ Consolidated Statements of Earnings $ and shares in millions, except per share amounts Fiscal Years Ended Revenue Cost of sales Gross profit Selling, general and administrative expenses Restructuring charges Operating income Other Income (expense): Gain on sale of investments Investment income and other Interest expense Earnings before income tax expense Income tax expense Net earnings January 30, 2021 47,262 36,689 10,573 7.928 254 2.391 February 1, 2020 43,638 33,590 10,048 7,998 41 2,009 February 2, 2019 42,879 32,918 9.961 8.015 46 1,900 1 37 (52) 2,377 579 1.798 1 47 (64) 1,993 452 1,541 12 49 (73) 1.888 424 1,464 $ $ Basic earnings per share Diluted earnings per share $ $ 6.93 6.84 $ $ 5.82 5.75 $ $ 5.30 5.20 Weighted average common shares outstanding: Basic Diluted 259.6 263.0 264.9 268.1 276.4 281.4 See Notes to Consolidated Financial Statements. Return on total assets Overall profitability of assets Return on common stockholders' equity Book value per common share Net income Average total assets Net income Preferred dividends Average common stockholders' equity Shareholders' equity applicable to common shares Number of common shares outstanding Net income Preferred dividends Weighted-average common shares outstanding Profitability of owner investment Liquidation at reported amounts Net income per common share Basic earnings per share = Market Prospects Price-earnings ratio Market price per common share Earnings per share Annual cash dividends per share Market price per share Market value relative to earnings Cash return per common share Dividend yield