Best Buy Co. Inc (BBY)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,053,000 | 2,795,000 | 3,020,000 | 4,587,000 | 3,479,000 |
| Debt-to-capital ratio | 0.27 | 0.29 | 0.29 | 0.21 | 0.27 |
February 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,152,000K ÷ ($1,152,000K + $3,053,000K)
= 0.27
The debt-to-capital ratio of Best Buy Co. Inc has fluctuated over the past five years, ranging from 0.21 in January 30, 2021, to 0.29 in both January 28, 2023, and January 29, 2022. This ratio indicates the proportion of a company's capital that is funded by debt compared to equity. A lower ratio suggests a lower level of financial risk as the company relies less on debt financing.
In the most recent data as of February 3, 2024, the debt-to-capital ratio stands at 0.27, which is slightly lower than the ratios in the two prior years. This implies that Best Buy Co. Inc is using a moderate level of debt to finance its operations and investments compared to its equity. It is important to assess this ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial health and leverage position.