Best Buy Co. Inc (BBY)
Cash ratio
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,578,000 | 643,000 | 1,387,000 | 1,214,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 147,000 | 184,000 | — | 251,000 | 227,000 | 200,000 | 178,000 | 176,000 | 125,000 | — | — | 625,000 | 690,000 | 60,000 | 65,000 | 545,000 | 108,000 | 107,000 |
| Total current liabilities | US$ in thousands | 8,016,000 | 9,948,000 | 8,451,000 | 7,649,000 | 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 |
| Cash ratio | 0.20 | 0.06 | 0.18 | 0.18 | 0.18 | 0.09 | 0.16 | 0.16 | 0.23 | 0.11 | 0.11 | 0.07 | 0.28 | 0.34 | 0.49 | 0.45 | 0.53 | 0.44 | 0.54 | 0.46 |
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 fluctuated over the period indicated in the data. The cash ratio represents the proportion of a company's current assets held in cash or cash equivalents relative to its current liabilities. A higher cash ratio indicates that the company has a greater ability to cover its short-term obligations using liquid assets.
From May 2020 to February 2025, Best Buy's cash ratio ranged from 0.07 to 0.54. The company's cash ratio reached its peak at 0.54 in August 2020, indicating a strong ability to cover its short-term liabilities with its available cash and cash equivalents. However, there were fluctuations in the cash ratio in subsequent periods, with some quarters showing a decline in the ratio.
The decreasing trend observed in the cash ratio from October 2021 to November 2024 suggests that the company may have been deploying its cash reserves for investments or other uses, rather than holding them in liquid form. The low cash ratio values in some quarters, such as November 2024, could imply a potential liquidity risk if the company faces sudden demands for cash to meet its short-term obligations.
Overall, the analysis of Best Buy's cash ratio highlights the importance of monitoring the company's liquidity position and ensuring that it maintains an appropriate level of cash reserves to meet its short-term financial obligations.