Best Buy Co. Inc (BBY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.33 | 0.16 | 0.28 | 0.28 | 0.30 | 0.18 | 0.26 | 0.26 | 0.36 | 0.21 | 0.21 | 0.17 | 0.37 | 0.43 | 0.57 | 0.54 | 0.63 | 0.52 | 0.63 | 0.54 |
| 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 |
Best Buy Co. Inc's liquidity ratios show a mixed performance over the analyzed period.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 0.96 to 1.19. Although the current ratio increased from 0.96 in April 2022 to 1.03 in February 2025, showing an improvement in short-term liquidity, it slightly decreased to 1.00 in November 2024.
The quick ratio, indicating the company's ability to meet its short-term obligations with its most liquid assets, also exhibited volatility ranging from 0.16 to 0.63. The quick ratio improved from a low of 0.16 in November 2, 2024, to 0.33 in February 1, 2025, showing a positive trend in liquidity.
The cash ratio, representing the proportion of a company's most liquid assets to its current liabilities, has varied between 0.06 and 0.54. Notably, the cash ratio experienced fluctuations throughout the period, with a gradual improvement from 0.06 in November 2, 2024, to 0.20 in February 1, 2025.
Overall, while there were fluctuations in liquidity ratios, Best Buy Co. Inc showed improvements in its ability to meet short-term obligations with liquid assets over the analyzed period. However, the company should continue to monitor and manage its liquidity position effectively to ensure it can meet its short-term financial commitments.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 10.37 | 15.42 | 9.28 | 12.71 | 11.35 | 12.16 | 8.93 | 10.51 | 3.51 | 10.30 | 12.26 | 12.86 | -0.28 | 8.42 | 1.39 | 0.19 | -5.41 | -8.85 | -19.29 | 1.57 |
The cash conversion cycle (CCC) is an important metric that measures how long it takes for a company to convert its resources, such as inventory, into cash flow from sales. In the case of Best Buy Co. Inc, the CCC has fluctuated over the past few years:
- From May 2, 2020, to January 29, 2022, the company experienced negative CCC values, indicating that it was able to convert its resources into cash flow quickly. This could be due to efficient inventory management and strong sales performance during this period.
- However, from April 30, 2022, to November 2, 2024, the CCC values turned positive, suggesting that Best Buy Co. Inc took longer to convert its resources into cash flow. This could be attributed to factors such as increased inventory levels, slower sales, or delays in collecting receivables.
- Overall, the trend in the CCC for Best Buy Co. Inc shows fluctuations but generally indicates a reasonable management of working capital. The company should continue to monitor and optimize its CCC to ensure efficient operations and cash flow management in the future.