Best Buy Co., Inc (BBY) has reported 26.72 percent rise in profit for the quarter ended Jan. 28, 2017. The company has earned $607 million, or $1.91 a share in the quarter, compared with $479 million, or $1.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $621 million, or $1.95 a share compared with $524 million or $1.53 a share, a year ago. 

Revenue during the quarter went down marginally by 1.04 percent to $13,482 million from $13,623 million in the previous year period. Gross margin for the quarter expanded 81 basis points over the previous year period to 22.47 percent. Total expenses were 93.47 percent of quarterly revenues, down from 94.34 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 6.53 percent.

Operating income for the quarter was $881 million, compared with $771 million in the previous year period.

However, the adjusted operating income for the quarter stood at $900 million compared to $808 million in the prior year period. At the same time, adjusted operating margin improved 74 basis points in the quarter to 6.68 percent from 5.93 percent in the last year period.

"In the fourth quarter, we delivered Enterprise revenue of $13.5 billion, near the midpoint of our guidance range, improved our operating income rate by 80 basis points and delivered significantly higher-than-expected EPS growth. On a full year basis, we delivered the topline performance we outlined at the beginning of the year -- with materially better earnings than originally expected," said Hubert Joly, Best Buy chairman and CEO.

For the financial year 2018, Best Buy Co., Inc. projects revenue to grow at 1.50 percent on a 53-week basis .

For the first-quarter, Best Buy Co., Inc. forecasts revenue to be in the range of $8,200 million to $8,300 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.35 to $0.40. 

Best Buy Co., Inc. has generated cash of $2,545 million from operating activities during the year, up 92.51 percent or $1,223 million, when compared with the last year.

The company has spent $887 million cash to meet investing activities during the year as against cash outgo of $419 million in the last year.

The company has spent $1,404 million cash to carry out financing activities during the year as against cash outgo of $1,515 million in the last year period.

Cash and cash equivalents stood at $2,240 million as on Jan. 28, 2017, up 13.36 percent or $264 million from $1,976 million on Jan. 30, 2016.

Working capital increases

Best Buy Co., Inc. has recorded an increase in the working capital over the last year. It stood at $3,394 million as at Jan. 28, 2017, up 14.62 percent or $433 million from $2,961 million on Jan. 30, 2016. Current ratio was at 1.48 as on Jan. 28, 2017, up from 1.43 on Jan. 30, 2016.

Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 6 days for the last year period. Days sales outstanding were almost stable at 5 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 21 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 22 days for the quarter from 19 for the same period last year.