Best Buy Co. Inc (BBY)
Debt-to-equity 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-equity ratio | 0.38 | 0.42 | 0.40 | 0.27 | 0.36 |
February 3, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,152,000K ÷ $3,053,000K
= 0.38
The debt-to-equity ratio of Best Buy Co. Inc has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage.
In 2024, the debt-to-equity ratio stands at 0.38, suggesting that the company has $0.38 in debt for every $1 of equity. This ratio has decreased from the previous year, where it was 0.42, indicating a reduction in the level of debt relative to equity.
Compared to 2022 and 2020, when the debt-to-equity ratios were 0.40 and 0.36 respectively, the current ratio shows improvement. However, it is higher than the ratio reported in 2021, which was 0.27, indicating that the company has taken on more debt relative to equity over the past year.
Overall, the trend in the debt-to-equity ratio of Best Buy Co. Inc reflects a moderate level of leverage, with fluctuations in the ratio over the five-year period. It is essential for investors and analysts to monitor these changes in the ratio to assess the company's financial health and risk profile.