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Best Buy Cost of Revenue vs Operating Income Analysis

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BBY -- USA Stock  

Earning Report: February 27, 2020  

Best Buy financial indicator trend analysis is way more than just evaluating Best Buy prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Best Buy is a good investment. Please check the relationship between Best Buy Cost of Revenue and its Operating Income accounts. Continue to Trending Equities.

Cost of Revenue vs Operating Income

Accounts Relationship

Cost of Revenue vs Operating Income

Significance: Very Strong Relationship

Cost of Revenue diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Best Buy Cost of Revenue account and Operating Income

Correlation Coefficient

0.85
Relationship DirectionPositive 
Relationship StrengthStrong

Cost of Revenue

Cost of Revenue is found on Best Buy income statement and represents the costs associated with goods and services Best Buy provides. Indirect cost, such as salaries, is not included. In other words, cost of revenue is the total cost incurred to obtain a sale. It is more than the traditional cost of goods sold, since it includes specific selling and marketing activities. The aggregate cost of goods produced and sold and services rendered during the reporting period.

Operating Income

Operating Income is the amount of profit realized from Best Buy operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Best Buy Co is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Operating income is a measure of financial performance before the deduction of [IntExp]; [TaxExp] and other Non-Operating items. It is calculated as Gross Profit minus [OpEx].