Best Buy Co. Inc (BBY)
Cash ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,578,000 | 1,447,000 | 1,874,000 | 2,936,000 | 5,494,000 |
| Short-term investments | US$ in thousands | — | — | 178,000 | — | 65,000 |
| Total current liabilities | US$ in thousands | 8,016,000 | 7,909,000 | 8,979,000 | 10,674,000 | 10,521,000 |
| Cash ratio | 0.20 | 0.18 | 0.23 | 0.28 | 0.53 |
February 1, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,578,000K
+ $—K)
÷ $8,016,000K
= 0.20
The cash ratio of Best Buy Co. Inc has been showing a declining trend over the past five years. As of February 1, 2025, the cash ratio stands at 0.20, indicating that the company has $0.20 in cash and cash equivalents for every $1 of current liabilities. This suggests that Best Buy's ability to cover its short-term obligations using its cash reserves has slightly improved compared to the previous year. However, it is still lower than the levels seen in the earlier years, which may raise concerns about the company's liquidity position. The management should closely monitor the cash management strategies to ensure sufficient liquidity to meet its short-term obligations effectively.