Best Buy Co. Inc (BBY)
Debt-to-capital ratio
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,144,000 | 1,144,000 | 1,157,000 | 1,134,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,808,000 | 3,082,000 | 3,107,000 | 3,082,000 | 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 |
| Debt-to-capital ratio | 0.29 | 0.27 | 0.27 | 0.27 | 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 |
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 some fluctuations over the past few years, indicating changes in the company's capital structure and leverage position. The ratio ranged from 0.14 to 0.30 during the period from May 2, 2020, to February 1, 2025.
From May 2, 2020 to February 1, 2025, the debt-to-capital ratio generally increased from 0.15 to 0.29. This indicates that the company has been relying more on debt to finance its operations and investments relative to its total capital. The ratio peaked at 0.30 on April 30, 2022, suggesting a higher proportion of debt in the company's capital structure at that point in time.
The ratio then fluctuated between 0.27 and 0.29 from February 1, 2025, to November 2, 2024, indicating a relatively stable level of debt compared to the total capital during this period. Overall, the increasing trend in the debt-to-capital ratio suggests that Best Buy Co. Inc has been taking on more debt over time, which could potentially increase the company's financial risk and interest burden. It is important for investors and analysts to monitor this ratio along with other financial metrics to assess the company's financial health and risk profile.