That produces nine inventory turns per year. You bet it is. That reduces the company's need for debt and allows more reinvestment in sales growth. And that's exactly what has happened. There ain't nothing wrong with those numbers.
Management thinks they can.
They believe that they can squeeze almost another turn out of the system by improving their supply chain. Furthermore, Best Buy will continue expanding, opening 60 new stores this year and formally launching its Internet sales division. These costs will be covered by cash flow from operations. These sales eventually will become downloads. In addition, Best Buy is looking to put CD burners in its superstores, so that music, movies, and software could disappear entirely from inventory, producing even better returns.