Best Buy Co. Inc (BBY)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,152,000 | 1,160,000 | 1,216,000 | 1,253,000 | 1,257,000 |
| Total assets | US$ in thousands | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 | 15,591,000 |
| Debt-to-assets ratio | 0.08 | 0.07 | 0.07 | 0.07 | 0.08 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,152,000K ÷ $14,967,000K
= 0.08
The debt-to-assets ratio for Best Buy Co. Inc has remained relatively stable over the past five years. It stood at 0.08 as of February 3, 2024, which indicates that for every dollar of assets the company has, it owes $0.08 in debt. This ratio suggests that Best Buy Co. Inc relies minimally on debt financing to fund its operations and investments, as a lower ratio generally indicates lower financial risk and greater financial stability. The consistent nature of the debt-to-assets ratio over the years indicates a prudent and sustainable approach to managing debt levels, reflecting positively on the company's financial health and management's decisions around capital structure.