Best Buy Co. Inc (BBY)
Debt-to-equity 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-equity ratio | 0.41 | 0.37 | 0.37 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.42 | 0.38 | 0.41 | 0.42 | 0.40 | 0.29 | 0.29 | 0.30 | 0.27 | 0.31 | 0.17 | 0.18 |
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 fluctuated over the period indicated in the data. The ratio indicates the proportion of a company's debt relative to its shareholders' equity. A lower ratio is generally preferred as it suggests lower financial risk.
From May 2, 2020, to February 1, 2025, Best Buy's debt-to-equity ratio ranged between 0.17 to 0.42. There was an increasing trend in the ratio from October 31, 2020, to April 30, 2022, where it peaked at 0.42 before declining slightly.
The ratio peaked again at 0.42 on January 28, 2023, and remained relatively stable around 0.40 for the next few periods. It then declined to 0.37 by November 2, 2024, before slightly increasing to 0.41 by February 1, 2025.
Overall, the debt-to-equity ratio of Best Buy Co. Inc indicates a moderate level of debt relative to equity. Investors and stakeholders may monitor this ratio to assess the company's leverage and its ability to cover obligations in the long run.