Best Buy Co. Inc (BBY)
Liquidity ratios
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|---|
| Current ratio | 1.03 | 1.00 | 0.98 | 0.99 | 1.19 |
| Quick ratio | 0.33 | 0.30 | 0.36 | 0.37 | 0.63 |
| Cash ratio | 0.20 | 0.18 | 0.23 | 0.28 | 0.53 |
The current ratio of Best Buy Co. Inc has been gradually decreasing over the years, from 1.19 in January 30, 2021, to 0.98 in January 28, 2023, indicating a potential weakening in the company's short-term liquidity position. However, it slightly improved to 1.03 in February 1, 2025.
Similarly, the quick ratio has shown a declining trend over the same period, from 0.63 in January 30, 2021, to 0.33 in February 1, 2025. This suggests that the company may be facing challenges in meeting its short-term obligations with its most liquid assets.
Moreover, the cash ratio of Best Buy Co. Inc has also decreased from 0.53 in January 30, 2021, to 0.20 in February 1, 2025, indicating a diminishing ability to cover current liabilities with cash alone.
Overall, the downward trend in these liquidity ratios raises concerns about Best Buy Co. Inc's ability to efficiently manage its short-term financial obligations. Investors and stakeholders should closely monitor these ratios to assess the company's liquidity position and potential liquidity risks in the future.
See also:
Additional liquidity measure
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 10.37 | 11.35 | 3.51 | -0.28 | -5.41 |
The cash conversion cycle of Best Buy Co. Inc has shown a fluctuating trend over the past few years. As of January 30, 2021, the company's cash conversion cycle was -5.41 days, indicating that it was able to convert its investments into cash quickly. However, this improved further by January 29, 2022, with the cycle decreasing to -0.28 days, suggesting even faster conversion.
By January 28, 2023, the cash conversion cycle turned positive at 3.51 days, signifying a slowdown in the conversion of investments into cash. This trend continued into February 3, 2024, when the cycle extended to 11.35 days, indicating a longer period for the company to recover its invested capital.
As of February 1, 2025, the cash conversion cycle slightly improved to 10.37 days, but it still remains higher compared to the earlier years. Overall, the varying trend in the cash conversion cycle reflects changes in Best Buy Co. Inc's efficiency in managing its working capital and converting investments into cash over the specified years.