Best Buy Co. Inc (BBY)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,674,000 | 1,824,000 | 3,053,000 | 2,429,000 | 2,057,000 |
| Interest expense | US$ in thousands | 52,000 | 35,000 | 25,000 | 52,000 | 64,000 |
| Interest coverage | 32.19 | 52.11 | 122.12 | 46.71 | 32.14 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,674,000K ÷ $52,000K
= 32.19
The interest coverage ratio for Best Buy Co. Inc has shown fluctuations over the past five years. In the most recent fiscal year ending on February 3, 2024, the interest coverage ratio was 32.19, indicating the company's ability to cover its interest expenses by its operating income. This ratio was lower compared to the previous year but still remains at a level that suggests the company is comfortably able to meet its interest obligations.
Looking back, the interest coverage ratio was significantly higher in the fiscal year ending January 29, 2022, at 122.12, reflecting a strong ability to cover interest expenses with operating income. This exceptionally high ratio may indicate a healthy financial position and effective management of debt during that period.
In the fiscal years ending January 28, 2023, and January 30, 2021, the interest coverage ratios were 52.11 and 46.71, respectively. These ratios were also relatively strong, suggesting a solid ability to handle interest payments.
Lastly, in the fiscal year ending February 1, 2020, the interest coverage ratio was 32.14, similar to the most recent fiscal year. This stability in the ratio over the years indicates a consistent ability to manage interest expenses relative to operating income.
Overall, Best Buy Co. Inc's interest coverage ratios have shown variations but generally reflect a company with a solid ability to meet its interest obligations, with some years showing exceptionally strong coverage.