Best Buy Co. Inc (BBY)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,808,000 | 3,053,000 | 2,795,000 | 3,020,000 | 4,587,000 |
| Debt-to-capital ratio | 0.29 | 0.27 | 0.29 | 0.29 | 0.21 |
February 1, 2025 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,144,000K ÷ ($1,144,000K + $2,808,000K)
= 0.29
The debt-to-capital ratio of Best Buy Co. Inc has shown a fluctuating trend over the past five years, ranging from 0.21 to 0.29. This ratio measures the proportion of the company's capital structure that is financed by debt. A higher ratio indicates a higher level of debt relative to the total capital employed, which can lead to increased financial risk.
From January 2022 to February 2025, the debt-to-capital ratio remained relatively stable, hovering around 0.29, suggesting that the company's reliance on debt financing has been consistent during this period. However, there was a slight dip in the ratio in February 2024 to 0.27, indicating a temporary decrease in debt relative to total capital.
Overall, Best Buy Co. Inc's debt-to-capital ratio suggests that the company has maintained a moderate level of debt in its capital structure, which can be considered manageable depending on its overall financial health and ability to service its debt obligations.