Best Buy Co (BSP:BBYY34) Debt-to-EBITDA : 1.22 (As of Jan. 2024)

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What is Best Buy Co Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Best Buy Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was R$3,103 Mil. Best Buy Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was R$16,481 Mil. Best Buy Co's annualized EBITDA for the quarter that ended in Jan. 2024 was R$16,112 Mil. Best Buy Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 1.22.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Best Buy Co's Debt-to-EBITDA or its related term are showing as below:

BSP:BBYY34' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.51 Med: 0.93 Max: 1.53
Current: 1.53

During the past 13 years, the highest Debt-to-EBITDA Ratio of Best Buy Co was 1.53. The lowest was 0.51. And the median was 0.93.

BSP:BBYY34's Debt-to-EBITDA is ranked better than
70.36% of 840 companies
in the Retail - Cyclical industry
Industry Median: 2.675 vs BSP:BBYY34: 1.53

Best Buy Co Debt-to-EBITDA Historical Data

The historical data trend for Best Buy Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Best Buy Co Debt-to-EBITDA Chart

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Debt-to-EBITDA

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1.39

1.22

1.01

1.45

1.53

Best Buy Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA	Get a 7-Day Free Trial															1.15	1.72	1.63	1.70	1.22

Competitive Comparison of Best Buy Co's Debt-to-EBITDA

For the Specialty Retail subindustry, Best Buy Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Best Buy Co's Debt-to-EBITDA Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Best Buy Co's Debt-to-EBITDA falls into.

Best Buy Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Best Buy Co's Debt-to-EBITDA for the fiscal year that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3103.384	+	16480.888)	/	12767.647
	=	1.53

Best Buy Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(3103.384	+	16480.888)	/	16112.024
	=	1.22

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

Best Buy Co (BSP:BBYY34) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Best Buy Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Best Buy Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Best Buy Co (BSP:BBYY34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (BSP:BBYY34) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

BBY:USA BBY:Mexico BUY:Germany

Address

7601 Penn Avenue South, Richfield, MN, USA, 55423

Website

https://www.investors.bestbuy.com

With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

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