Best Buy Co. Inc (BBY)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,350,000 | 1,712,000 | 1,704,000 | 1,681,000 | 1,674,000 | 1,701,000 | 1,709,000 | 1,698,000 | 1,824,000 | 2,003,000 | 2,304,000 | 2,737,000 | 3,053,000 | 3,301,000 | 3,195,000 | 2,967,000 | 2,429,000 | 2,358,000 | 2,197,000 | 1,944,000 |
| Interest expense (ttm) | US$ in thousands | 51,000 | 52,000 | 53,000 | 52,000 | 52,000 | 50,000 | 46,000 | 41,000 | 35,000 | 29,000 | 26,000 | 25,000 | 25,000 | 28,000 | 32,000 | 41,000 | 52,000 | 57,000 | 62,000 | 63,000 |
| Interest coverage | 26.47 | 32.92 | 32.15 | 32.33 | 32.19 | 34.02 | 37.15 | 41.41 | 52.11 | 69.07 | 88.62 | 109.48 | 122.12 | 117.89 | 99.84 | 72.37 | 46.71 | 41.37 | 35.44 | 30.86 |
February 1, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,350,000K ÷ $51,000K
= 26.47
The interest coverage ratio of Best Buy Co. Inc has shown a consistently strong trend over the past few years, indicating the company's ability to comfortably meet its interest obligations with its operating income.
Starting from May 2, 2020, where the interest coverage ratio was 30.86, the ratio steadily increased to a peak of 122.12 on January 29, 2022. This significant improvement suggests the company's profitability and operational efficiency were robust during this period.
Subsequently, the interest coverage ratio experienced a slight decline but remained relatively high, reflecting a stable financial position. However, a more noticeable decrease can be observed towards the end of the period, with a ratio of 26.47 on February 1, 2025.
While the interest coverage ratio has shown some fluctuations in recent periods, it is essential to monitor this trend closely to ensure Best Buy Co. Inc's financial health and ability to continue meeting its interest payment obligations.