Best Buy Co., Inc. — Earnings Quality Grade F
BBY · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 9 days, change -0 days YoY
AR growth -0.1% vs revenue growth 0.4%
Revenue 0.4%, CFFO -6.5%. Cash follows revenue
Expense Quality
Inventory 2.9% vs COGS 0.5%. Normal
CapEx growth -0.3% vs revenue 0.4%. Normal
SG&A/Gross Profit = 81.3%, exceeds 70%
Gross margin 22.5%, change -0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.84. Profits backed by cash
FCF $1.3B, FCF/NI = 1.18
Accruals ratio = -6.1%. Low accruals
Cash $1.7B covers only 42% of debt $4.1B
Balance Sheet Health
Goodwill+Intangibles $0.8B = 27% of equity. Manageable
Debt/EBITDA = 1.8x. Healthy
Other assets -14.6% vs revenue 0.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -20% YoY. Normal
Manipulation Score
M-Score = -2.82 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10