Best Buy Co. Inc (BBY)
Current ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,224,000 | 7,897,000 | 8,802,000 | 10,539,000 | 12,540,000 |
| Total current liabilities | US$ in thousands | 8,016,000 | 7,909,000 | 8,979,000 | 10,674,000 | 10,521,000 |
| Current ratio | 1.03 | 1.00 | 0.98 | 0.99 | 1.19 |
February 1, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,224,000K ÷ $8,016,000K
= 1.03
The current ratio of Best Buy Co. Inc, as shown in the data provided, has exhibited some fluctuations over the past five years. As of January 30, 2021, the current ratio stood at 1.19, indicating that the company had $1.19 in current assets for every $1 in current liabilities. However, there was a decrease in the ratio to 0.99 by January 29, 2022, suggesting a potential strain on the company's short-term liquidity position. This downward trend continued in the following years, with the ratio dipping to 0.98 by January 28, 2023.
Despite these declines, there was a slight improvement in the current ratio to 1.00 by February 3, 2024, indicating a better ability to meet its short-term obligations. Moreover, by February 1, 2025, the current ratio further increased to 1.03, signaling an improvement in the company's short-term liquidity position compared to previous years.
Overall, the current ratio of Best Buy Co. Inc has shown variability over the years, with a mix of fluctuations and improvements. It is essential for investors and stakeholders to monitor this ratio consistently to assess the company's liquidity and ability to meet its short-term financial obligations effectively.