Best Buy Co. Inc (BBY)
Debt-to-assets ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,144,000 | 1,152,000 | 1,160,000 | 1,216,000 | 1,253,000 |
| Total assets | US$ in thousands | 14,782,000 | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 |
| Debt-to-assets ratio | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 |
February 1, 2025 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,144,000K ÷ $14,782,000K
= 0.08
The debt-to-assets ratio for Best Buy Co. Inc has remained fairly stable at around 0.07 to 0.08 over the period from January 30, 2021, to February 1, 2025. This indicates that the company's level of debt in relation to its total assets has been consistently low, with only a slight increase noted in the most recent year. A lower debt-to-assets ratio generally implies lower financial risk, as it suggests that a smaller portion of the company's assets is financed by debt. However, it is essential to consider other factors and ratios alongside the debt-to-assets ratio to gain a comprehensive understanding of Best Buy's overall financial health and leverage position.