Best Buy Co. Inc (BBY)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,224,000 | 9,955,000 | 8,562,000 | 7,753,000 | 7,897,000 | 9,865,000 | 8,304,000 | 7,762,000 | 8,802,000 | 9,922,000 | 8,344,000 | 8,315,000 | 10,539,000 | 13,520,000 | 12,040,000 | 11,268,000 | 12,540,000 | 14,551,000 | 10,683,000 | 8,996,000 |
| 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 |
| Current ratio | 1.03 | 1.00 | 1.01 | 1.01 | 1.00 | 0.99 | 0.98 | 0.98 | 0.98 | 0.98 | 0.96 | 0.96 | 0.99 | 1.13 | 1.16 | 1.17 | 1.19 | 1.12 | 1.06 | 1.02 |
February 1, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,224,000K ÷ $8,016,000K
= 1.03
Best Buy Co. Inc's current ratio has shown fluctuations over the period studied. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
From May 2, 2020, to January 30, 2021, the current ratio improved steadily from 1.02 to 1.19, indicating an enhanced ability to cover short-term liabilities. However, there was a slight decline in the ratio by May 1, 2021, although it remained relatively stable around the 1.16 mark until October 29, 2022.
There was a notable decrease in the current ratio from January 29, 2022, to April 30, 2022, and then again to July 30, 2022, where it stood at 0.96. Even though it recovered slightly to 0.98 by October 28, 2023, and remained consistent until November 2, 2024, the ratio lingered below 1.00 for an extended period.
The ratio finally showed improvement from February 1, 2025, reaching 1.03, which indicates a better position in terms of current assets to cover current liabilities. Overall, the current ratio trend reflects fluctuations in Best Buy's short-term liquidity position, experiencing periods of strength and weakness over the timeframe analyzed.