The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Best Buy Co's quick ratio for the quarter that ended in Jan. 2024 was 0.37.
Best Buy Co has a quick ratio of 0.37. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Best Buy Co's Quick Ratio or its related term are showing as below:
BSP:BBYY34'
s Quick Ratio Range Over the Past 10 Years
Min: 0.37 Med: 0.53 Max: 0.81
Current: 0.37
During the past 13 years, Best Buy Co's highest Quick Ratio was 0.81. The lowest was 0.37. And the median was 0.53.
BSP:BBYY34's Quick Ratio is ranked worse than 82.02% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.865
vs BSP:BBYY34: 0.37
Best Buy Co Quick Ratio Historical Data
The historical data trend for Best Buy Co's Quick Ratio 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.
Competitive Comparison of Best Buy Co's Quick Ratio
For the Specialty Retail subindustry, Best Buy Co's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Best Buy Co's Quick Ratio falls into.
Best Buy Co Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Best Buy Co's Quick Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* 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.
Best Buy Co (BSP:BBYY34) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Best Buy Co Quick Ratio Related Terms
Thank you for viewing the detailed overview of Best Buy Co's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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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