Best Buy Co. Inc (BBY)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,578,000 | 643,000 | 1,387,000 | 1,214,000 | 1,447,000 | 636,000 | 1,093,000 | 1,030,000 | 1,874,000 | 932,000 | 840,000 | 640,000 | 2,936,000 | 3,465,000 | 4,340,000 | 4,278,000 | 5,494,000 | 5,136,000 | 5,305,000 | 3,919,000 |
| Short-term investments | US$ in thousands | — | — | 147,000 | 184,000 | — | 251,000 | 227,000 | 200,000 | 178,000 | 176,000 | 125,000 | — | — | 625,000 | 690,000 | 60,000 | 65,000 | 545,000 | 108,000 | 107,000 |
| Receivables | US$ in thousands | 1,044,000 | 932,000 | 871,000 | 770,000 | 939,000 | 901,000 | 856,000 | 860,000 | 1,141,000 | 1,050,000 | 840,000 | 804,000 | 1,042,000 | 1,016,000 | 883,000 | 850,000 | 1,061,000 | 1,028,000 | 906,000 | 749,000 |
| 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 |
| 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 |
February 1, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,578,000K
+ $—K
+ $1,044,000K)
÷ $8,016,000K
= 0.33
The quick ratio of Best Buy Co. Inc has shown fluctuations over the analyzed period, ranging from a low of 0.17 to a high of 0.63. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulty in meeting its short-term liabilities, indicating a potential liquidity issue.
The trend of the quick ratio for Best Buy Co. Inc indicates some instability in its short-term liquidity position. A generally decreasing trend from 2020 to 2022 reflect potential challenges in meeting short-term obligations. However, there has been some improvement in the quick ratio in the latter part of the analysis period, suggesting a possible enhancement in liquidity.
Investors and creditors may closely monitor the quick ratio of Best Buy Co. Inc to assess its ability to manage short-term financial obligations effectively. Further analysis of the company's cash flow and working capital management practices may provide additional insights into its overall liquidity position.