Best Buy Co. Inc (BBY)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,447,000 | 1,874,000 | 2,936,000 | 5,494,000 | 2,229,000 |
| Short-term investments | US$ in thousands | — | 178,000 | — | 65,000 | 117,000 |
| Receivables | US$ in thousands | 939,000 | 1,141,000 | 1,042,000 | 1,061,000 | 1,149,000 |
| Total current liabilities | US$ in thousands | 7,909,000 | 8,979,000 | 10,674,000 | 10,521,000 | 8,060,000 |
| Quick ratio | 0.30 | 0.36 | 0.37 | 0.63 | 0.43 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,447,000K
+ $—K
+ $939,000K)
÷ $7,909,000K
= 0.30
The quick ratio of Best Buy Co. Inc has seen fluctuations over the past five years, indicating varying levels of liquidity and ability to meet short-term obligations without relying on inventory.
In fiscal year 2024 (Feb 3, 2024), the quick ratio stood at 0.30, the lowest among the five years. This suggests that Best Buy may have had relatively fewer liquid assets available to cover its current liabilities without relying on inventory.
In comparison, the quick ratio was slightly higher in fiscal year 2023 (Jan 28, 2023) at 0.36, indicating a slight improvement in the company's ability to meet short-term obligations immediately.
The quick ratio improved further in fiscal year 2022 (Jan 29, 2022) to 0.37, signaling a stronger liquidity position compared to the previous year.
The most notable improvement in the quick ratio was seen in fiscal year 2021 (Jan 30, 2021) where the ratio was at 0.63, suggesting that Best Buy had a significantly higher proportion of liquid assets relative to its current liabilities, indicating a robust liquidity position.
However, in fiscal year 2020 (Feb 1, 2020), the quick ratio dropped to 0.43, indicating a slight decrease in liquidity compared to the prior year.
Overall, the trend in Best Buy's quick ratio shows some variability, with fluctuations reflecting changes in the company's liquidity position and ability to meet short-term obligations effectively without relying on inventory. Further analysis of the underlying components contributing to the quick ratio would provide more insights into Best Buy's liquidity management.