Best Buy Co. Inc (BBY)
Financial leverage ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,782,000 | 14,967,000 | 15,803,000 | 17,504,000 | 19,067,000 |
| Total stockholders’ equity | US$ in thousands | 2,808,000 | 3,053,000 | 2,795,000 | 3,020,000 | 4,587,000 |
| Financial leverage ratio | 5.26 | 4.90 | 5.65 | 5.80 | 4.16 |
February 1, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,782,000K ÷ $2,808,000K
= 5.26
The financial leverage ratio for Best Buy Co. Inc has shown fluctuations over the past five years. It was 4.16 as of January 30, 2021, increased to 5.80 by January 29, 2022, slightly decreased to 5.65 by January 28, 2023, further decreased to 4.90 by February 3, 2024, and then increased again to 5.26 by February 1, 2025. Overall, the trend indicates that the company's reliance on debt to finance its operations has been increasing and then reducing over the period, with some variation. The company should monitor its financial leverage ratio closely to ensure it maintains a healthy balance between debt and equity in its capital structure.