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Best Buy Co Inc (NYSE:BBY)
Debt to Equity
0.37 (As of Apr. 2014)

Best Buy Co Inc's current portion of long-term debt for the quarter that ended in Apr. 2014 was $44 Mil. Best Buy Co Inc's long-term debt for the quarter that ended in Apr. 2014 was $1,604 Mil. Best Buy Co Inc's total equity for the quarter that ended in Apr. 2014 was $4,424 Mil. Best Buy Co Inc's debt to equity for the quarter that ended in Apr. 2014 was 0.37.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Best Buy Co Inc's Debt to Equity Ratio for the fiscal year that ended in Jan. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(45 + 1612) / 3989
=0.42

Best Buy Co Inc's Debt to Equity Ratio for the quarter that ended in Apr. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(44 + 1604) / 4424
=0.37

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
deb2equity 0.250.140.110.110.180.420.290.260.590.42

Best Buy Co Inc Quarterly Data

Feb12Apr12Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14
deb2equity 0.590.550.630.570.580.470.450.420.370.36
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