Best Buy Co. Inc (BBY)
Cash ratio
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,447,000 | 636,000 | 1,093,000 | 1,030,000 | 1,874,000 | 932,000 | 840,000 | 640,000 | 2,936,000 | 3,465,000 | 4,340,000 | 4,278,000 | 5,494,000 | 5,136,000 | 5,305,000 | 3,919,000 | 2,229,000 | 1,205,000 | 1,289,000 | 1,561,000 |
| Short-term investments | US$ in thousands | — | 251,000 | 227,000 | 200,000 | 178,000 | 176,000 | 125,000 | — | — | — | — | 60,000 | — | 545,000 | — | — | — | — | 320,000 | — |
| Total current liabilities | US$ in thousands | 7,909,000 | 10,010,000 | 8,433,000 | 7,908,000 | 8,979,000 | 10,170,000 | 8,650,000 | 8,635,000 | 10,674,000 | 11,946,000 | 10,357,000 | 9,641,000 | 10,521,000 | 12,945,000 | 10,080,000 | 8,804,000 | 8,060,000 | 9,726,000 | 7,576,000 | 7,171,000 |
| Cash ratio | 0.18 | 0.09 | 0.16 | 0.16 | 0.23 | 0.11 | 0.11 | 0.07 | 0.28 | 0.29 | 0.42 | 0.45 | 0.52 | 0.44 | 0.53 | 0.45 | 0.28 | 0.12 | 0.21 | 0.22 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,447,000K
+ $—K)
÷ $7,909,000K
= 0.18
The cash ratio of Best Buy Co. Inc has shown fluctuations over the last few quarters. The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents.
Looking at the trend, we observe that the cash ratio was relatively low in the first half of 2020 but started to increase in the latter part of 2020 and peaked in early 2021. This increase indicates that Best Buy had a higher proportion of cash and cash equivalents compared to its current liabilities during that period.
Subsequently, the cash ratio declined in mid-2021 but remained at a moderate level until early 2022. However, in the later quarters of 2022 and early 2023, the cash ratio saw a noticeable decrease, reaching its lowest point in April 2023. This decline could suggest that Best Buy's cash and cash equivalents were not sufficient to cover its short-term obligations during this period.
In the most recent quarters, the cash ratio has shown a mixed trend, with fluctuations between 0.16 and 0.28. It is important for investors and stakeholders to closely monitor Best Buy's cash ratio to assess the company's liquidity position and its ability to meet its short-term financial obligations.