Best Buy Co (Best Buy Co) Interest Coverage

: 52.14 (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Best Buy Co's Operating Income for the three months ended in Jan. 2024 was $730 Mil. Best Buy Co's Interest Expense for the three months ended in Jan. 2024 was $-14 Mil. Best Buy Co's interest coverage for the quarter that ended in Jan. 2024 was 52.14. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Best Buy Co's Interest Coverage or its related term are showing as below:

BBY' s Interest Coverage Range Over the Past 10 Years
Min: 16.17 Med: 29.35 Max: 120.2
Current: 33.21

BBY's Interest Coverage is ranked better than
77.32% of 754 companies
in the Retail - Cyclical industry
Industry Median: 7.83 vs BBY: 33.21

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Best Buy Co Interest Coverage Historical Data

The historical data trend for Best Buy Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

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32.03

50.87

120.20

55.49

33.21

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
Interest Coverage	Get a 7-Day Free Trial															56.92	25.17	28.42	25.29	52.14

Competitive Comparison

For the Specialty Retail subindustry, Best Buy Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Best Buy Co's Interest Coverage falls into.

Best Buy Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Best Buy Co's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Best Buy Co's Interest Expense was $-52 Mil. Its Operating Income was $1,727 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,351 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	1727	/	-52
	=	33.21

Best Buy Co's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Best Buy Co's Interest Expense was $-14 Mil. Its Operating Income was $730 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,351 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	730	/	-14
	=	52.14

The higher the ratio, the stronger the company's Financial Strength is.

Best Buy Co (NYSE:BBY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Best Buy Co Interest Coverage Related Terms

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Best Buy Co (Best Buy Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (NYSE:BBY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BBY:Mexico BUY:Germany BUY:Germany BBYY34:Brazil

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.

Executives

Richard M Schulze	10 percent owner	BEST BUY CO INC, 7075 FLYING CLOUD DRIVE, EDEN PRAIRIE MN 55344
Todd G. Hartman	officer: GC, Chief Risk/Comp Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
David C Kimbell	director	8410 W. BRYN MAWR, CHICAGO IL 60631
Kathleen Scarlett	officer: Chief Human Resources Officer	7601 PENN AVE S, RICHFIELD MN 55423
Jason J Bonfig	officer: Chief Merchandising Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Matthew M Bilunas	officer: Chief Financial Officer	C/O BEST BUY CO., INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Barry Corie S	officer: CFO	7601 PENN AVE S., RICHFIELD MN 55423
Mathew Watson	officer: VP, Finance - Contr. & CAO	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Damien Harmon	officer: Pres., Omnichannel Ops & Serv	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Sima Sistani	director	675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010
Melinda D Whittington	director	THREE LAKES DRIVE, NORTHFIELD IL 60093
Deborah Disanzo	officer: President, Best Buy Health	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Allison Peterson	officer: Chief Customer Officer	7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Brian A Tilzer	officer: Chief Digital & Tech Officer	CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Mark A Irvin	officer: Chief Supply Chain Officer	7601 PENN AVENUE, RICHFIELD MN 55423