Best Buy Co. Inc (BBY)
Current ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,897,000 | 8,802,000 | 10,539,000 | 12,540,000 | 8,857,000 |
| Total current liabilities | US$ in thousands | 7,909,000 | 8,979,000 | 10,674,000 | 10,521,000 | 8,060,000 |
| Current ratio | 1.00 | 0.98 | 0.99 | 1.19 | 1.10 |
February 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,897,000K ÷ $7,909,000K
= 1.00
The current ratio of Best Buy Co. Inc has fluctuated over the past five years, ranging from 1.19 in January 30, 2021, to 0.98 in January 28, 2023. The ratio indicates the company's ability to pay its short-term obligations using its current assets. A ratio of 1.00 in February 3, 2024, suggests that the company's current assets are equal to its current liabilities, indicating a balanced liquidity position.
However, the downward trend in the current ratio from 2021 to 2023 may raise concerns about the company's liquidity position and ability to cover short-term obligations. It is important to closely monitor the current ratio in future periods to assess Best Buy's ongoing liquidity management and financial health.