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GuruFocus has detected 2 Warning Signs with Best Buy Co Inc $BBY.
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Best Buy Co Inc (NYSE:BBY)
Debt-to-Equity
0.30 (As of Apr. 2017)

Best Buy Co Inc's current portion of long-term debt for the quarter that ended in Apr. 2017 was $45 Mil. Best Buy Co Inc's long-term debt for the quarter that ended in Apr. 2017 was $1,302 Mil. Best Buy Co Inc's total equity for the quarter that ended in Apr. 2017 was $4,499 Mil. Best Buy Co Inc's debt to equity for the quarter that ended in Apr. 2017 was 0.30.

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. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(44 + 1321) / 4709
=0.29

Best Buy Co Inc's Debt to Equity Ratio for the quarter that ended in Apr. 2017 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(45 + 1302) / 4499
=0.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Best Buy Co Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Jan13Jan14Jan15Jan16Jan17
deb2equity 0.180.420.290.260.590.750.420.320.400.29

Best Buy Co Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
deb2equity 0.320.330.350.350.400.310.320.320.290.30
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