Best Buy Co. Inc (BBY)
Debt-to-capital ratio
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,152,000 | 1,130,000 | 1,145,000 | 1,155,000 | 1,160,000 | 1,142,000 | 1,184,000 | 1,170,000 | 1,216,000 | 1,223,000 | 1,243,000 | 1,229,000 | 1,253,000 | 1,256,000 | 632,000 | 621,000 | 1,257,000 | 1,239,000 | 1,247,000 | 1,193,000 |
| Total stockholders’ equity | US$ in thousands | 3,053,000 | 2,812,000 | 2,835,000 | 2,793,000 | 2,795,000 | 2,993,000 | 2,892,000 | 2,767,000 | 3,020,000 | 4,278,000 | 4,335,000 | 4,158,000 | 4,587,000 | 4,086,000 | 3,778,000 | 3,410,000 | 3,479,000 | 3,125,000 | 3,285,000 | 3,354,000 |
| Debt-to-capital ratio | 0.27 | 0.29 | 0.29 | 0.29 | 0.29 | 0.28 | 0.29 | 0.30 | 0.29 | 0.22 | 0.22 | 0.23 | 0.21 | 0.24 | 0.14 | 0.15 | 0.27 | 0.28 | 0.28 | 0.26 |
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 shown some variation over the past few quarters, ranging from 0.14 to 0.30. The ratio indicates the proportion of a company's capital that is financed through debt. A lower ratio suggests that the company relies more on equity financing, while a higher ratio indicates higher reliance on debt financing.
In the most recent period of Feb 3, 2024, the ratio stood at 0.27, which signifies that around 27% of Best Buy's capital structure is funded by debt. This implies that the company has a moderate level of debt compared to its total capital. It is important to note that a higher debt-to-capital ratio could potentially indicate higher financial risk due to the company's increased debt obligations.
The trend over the past few quarters has shown relative stability, with the ratio hovering around the 0.22 to 0.30 range. This indicates that Best Buy has maintained a consistent balance between debt and equity financing. Overall, the debt-to-capital ratio provides insight into Best Buy's capital structure and financial risk profile, highlighting its ability to manage debt levels effectively.