Best Buy Co. Inc (BBY)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 8,857,000 | 10,175,000 | 8,192,000 | 8,014,000 |
| 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 |
| Current ratio | 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 | 1.10 | 1.05 | 1.08 | 1.12 |
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 been relatively stable over the past few years, ranging from 0.96 to 1.19. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio of 1.00 means the company has just enough current assets to cover its current liabilities.
In general, a current ratio above 1.00 indicates that the company has more current assets than current liabilities, which is considered healthy. Best Buy's current ratio has mostly been above 1.00, indicating a good ability to meet its short-term obligations. However, it dipped to 0.96 in Jul 30, 2022, indicating a slight weakness in its liquidity position at that time.
Investors and creditors typically prefer a current ratio of at least 1.00, but excessively high ratios could suggest inefficient use of assets. Best Buy's current ratio has ranged around this benchmark, showing a balanced approach to managing its short-term financial obligations.