ROA measures thata company’s ability to make a profit by using its assets such as cash, buildings, equipment, and inventory. ROE is a very important measurementsmeasurement for investors because it shows how efficiently the company is using its investments to grow businessesbusiness. Best Buy’s ROA and ROE have fluctuated over the past few years.
Best Buy has been increasing currantcurrent ratio, thatwhich shows the company’s ability to pay off its short-term debt. It is hard to say that what an ideal current ratio is, because it can be vary depending on the size of businessesbusiness or industry.
Return on Asset and Equity: Best Buy’s ROA is the lowest among otherits competitors. ItThis shows that Best Buy was not efficient at making a profit with its current assets efficiently comparingwhen compared with others. As for ROE, it is also placed at the lowest point that makesamong its peers, making it a less attractiveness to investors to investattractive prospect for investors.
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