Best Buy Co. Inc (BBY)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,782,000 | 17,018,000 | 15,624,000 | 14,752,000 | 14,967,000 | 16,882,000 | 15,318,000 | 14,688,000 | 15,803,000 | 17,021,000 | 15,419,000 | 15,251,000 | 17,504,000 | 20,102,000 | 18,579,000 | 17,705,000 | 19,067,000 | 21,202,000 | 17,412,000 | 15,605,000 |
| 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 |
| Financial leverage ratio | 5.26 | 5.52 | 5.03 | 4.79 | 4.90 | 6.00 | 5.40 | 5.26 | 5.65 | 5.69 | 5.33 | 5.51 | 5.80 | 4.70 | 4.29 | 4.26 | 4.16 | 5.19 | 4.61 | 4.58 |
February 1, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,782,000K ÷ $2,808,000K
= 5.26
Best Buy Co. Inc's financial leverage ratio has shown some fluctuations over the past few years, ranging from 4.16 to 6.00. The financial leverage ratio measures the company's use of debt to finance its operations and growth.
From January 2021 to October 2023, the financial leverage ratio increased steadily from 4.16 to 6.00, indicating that the company was relying more on debt to fund its operations and investments during this period. However, in the following quarters, the ratio decreased slightly but remained relatively high, hovering around 5.00.
A high financial leverage ratio suggests that Best Buy Co. Inc has a significant amount of debt relative to its equity, which can increase financial risk due to higher interest payments and potential difficulties in meeting debt obligations. It is essential for the company to carefully manage its debt levels to ensure long-term sustainability and financial health.
Overall, the trend in the financial leverage ratio for Best Buy Co. Inc indicates a moderate to high level of leverage, which may require close monitoring and strategic decision-making regarding capital structure and debt management in the future.