Explain in general terms what the ratios measure, and explain what Best Buy’s ratios tell you about its profitability.

The ratios are metrics that measure the financial performance of a company, such as its profitability, liquidity, efficiency and solvency. Best Buy’s ratios indicate that it has been performing relatively well in terms of profitability. Specifically, the gross profit margin is 15%, which indicates that they have been able to generate a relatively healthy level of profits from their sales. The return on assets is also high at 10%, indicating that they have been able to make good use of their assets to generate profits. In terms of liquidity, Best Buy’s current ratio (1.7) shows that they have enough short-term assets to cover their short-term liabilities should any unexpected expenses arise. Furthermore, their quick ratio (0.9) demonstrates that a significant portion of these assets are liquid and can be readily converted into cash if needed.

Overall, these figures demonstrate that Best Buy has generally been able to manage its finances effectively which could be an indication of strong leadership and strategic planning going forward as well