Exploring Best Buy's Conservative Accounting: A Closer Look at Soft Earnings

Tuesday, Dec 2, 2025 8:41 am ET1min read

Best Buy's recent earnings report showed soft profit numbers, but the company's conservative accounting practices may explain this. The accrual ratio, which measures a company's conversion of reported profits into free cash flow, was negative at -0.28, indicating strong cash conversion. Unusual items worth $882m reduced Best Buy's profit, but this helped to improve its cash flow.

Exploring Best Buy's Conservative Accounting: A Closer Look at Soft Earnings

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