What is Best Buy's free cash flow margin?

Best Buy (BBY) reported free cash flow margin of 3.2% in Q2 2024.

What does free cash flow margin mean?

How much real, spendable cash each sales dollar generates after reinvestment.

How do you interpret free cash flow margin?

A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.

How does free cash flow margin compare across companies?

Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.

Best Buy BBY Free cash flow margin

Free cash flow margin at other companies

TargetTGT

2.8%-0.5pp

Walmart WMT

1.7%-0.2pp

AmazonAMZN

1.4%-1.8pp

Dell TechnologiesDELL

7%+3.1pp

SharkNinjaSN

2.7%-1.6pp

Lowe's CompaniesLOW

8.6%+0.6pp

Other financials

Income statement

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Revenue$8.9B+1.9%

Gross profit$2.1B+2.6%

Operating income$370.0M+69.0%

Net income$276.0M+36.6%

EPS (diluted)$1.31+37.9%

Balance sheet

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Cash & equivalents$2.0B+41.9%

Total debt$4.2B+2.0%

Total equity$3.1B+11.6%

Total assets$14.9B+5.4%

Cash flow

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Operating cash flow$375.0M+1,003%

CapEx$160.0M-3.6%

Free cash flow$215.0M+263%

Valuation

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Market cap$15.75B-9.3%

Enterprise value$17.88B-11.0%

P/E13.8×-5.9×

P/S0.4×0.0×

Profitability

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Gross margin22.5%-0.1pp

Operating margin3.7%+0.9pp

Net margin2.7%+0.6pp

Returns & leverage

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Return on equity39.1%+8.9pp

Debt / equity1.4×-0.1×

Current ratio1.1×+0.1×

Where this comes from

Calculated from Best Buy’s reported figures.

free cash flow/total revenue=3.2%

Based on trailing twelve months.

The official record: Best Buy’s 10-Q, filed September 5, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is Best Buy's free cash flow margin?: Best Buy (BBY) reported free cash flow margin of 3.2% in Q2 2024.
What does free cash flow margin mean?: How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?: A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?: Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.