Best Buy Co. Inc (BBY)
Debt-to-equity 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-equity ratio | 0.41 | 0.38 | 0.42 | 0.40 | 0.27 |
February 1, 2025 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,144,000K ÷ $2,808,000K
= 0.41
The debt-to-equity ratio of Best Buy Co. Inc has shown a consistent upward trend over the past five years, increasing from 0.27 in January 30, 2021, to 0.41 in February 1, 2025. This indicates that the company's reliance on debt relative to equity has been on the rise during this period. A higher debt-to-equity ratio may suggest that the company is financing its operations more through debt rather than equity, potentially increasing financial risk. It would be important for stakeholders to closely monitor this trend to assess the company's financial stability and leverage levels.