Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Best Buy Co. Inc., solvency ratios
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Best Buy Co. Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Best Buy Co. Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Best Buy Co. Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Best Buy Co. Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Best Buy Co. Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Best Buy Co. Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Best Buy Co. Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Best Buy Co. Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Best Buy Co. Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Best Buy Co. Inc., debt to equity calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.41 | 0.30 | 0.37 | 0.42 | 0.38 | 0.29 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | 0.59 | 0.54 | 0.66 | — | — | — | |
| Home Depot Inc. | — | 11.29 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 15.16 | 9.79 | 4.45 | — | — | |
| TJX Cos. Inc. | 0.56 | 1.04 | 0.38 | 0.44 | — | — | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.06 | 0.93 | 1.17 | — | — | — | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | 1.54 | 1.52 | 2.37 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to equity = Total debt ÷ Total Best Buy Co., Inc. shareholders’ equity
= 1,229 ÷ 3,020 = 0.41
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Best Buy Co. Inc. debt to equity ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Best Buy Co. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Current portion of operating lease liabilities | 648) | 693) | 660) | —) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 2,061) | 2,012) | 2,138) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,938) | 4,082) | 4,069) | 1,388) | 1,355) | 1,365) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.30 | 0.89 | 1.17 | 0.42 | 0.38 | 0.29 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 1.06 | 0.96 | 1.08 | — | — | — | |
| Home Depot Inc. | — | 13.16 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 18.24 | 12.04 | 4.45 | — | — | |
| TJX Cos. Inc. | 2.08 | 2.66 | 1.93 | 0.44 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.67 | 1.46 | 1.76 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 1.94 | 1.90 | 2.84 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Best Buy Co., Inc. shareholders’ equity
= 3,938 ÷ 3,020 = 1.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Best Buy Co. Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital
Best Buy Co. Inc., debt to capital calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Total capital | 4,249) | 5,964) | 4,750) | 4,694) | 4,967) | 6,074) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.29 | 0.23 | 0.27 | 0.30 | 0.27 | 0.22 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | 0.37 | 0.35 | 0.40 | — | — | — | |
| Home Depot Inc. | 1.04 | 0.92 | 1.11 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 1.24 | 0.94 | 0.91 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.36 | 0.51 | 0.27 | 0.31 | — | — | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.51 | 0.48 | 0.54 | — | — | — | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | 0.61 | 0.60 | 0.70 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 1,229 ÷ 4,249 = 0.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Best Buy Co. Inc. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Best Buy Co. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Current portion of operating lease liabilities | 648) | 693) | 660) | —) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 2,061) | 2,012) | 2,138) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,938) | 4,082) | 4,069) | 1,388) | 1,355) | 1,365) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Total capital (including operating lease liability) | 6,958) | 8,669) | 7,548) | 4,694) | 4,967) | 6,074) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.47 | 0.54 | 0.30 | 0.27 | 0.22 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.51 | 0.49 | 0.52 | — | — | — | |
| Home Depot Inc. | 1.04 | 0.93 | 1.09 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 1.20 | 0.95 | 0.92 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.68 | 0.73 | 0.66 | 0.31 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.63 | 0.59 | 0.64 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.66 | 0.65 | 0.74 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,938 ÷ 6,958 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Best Buy Co. Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets
Best Buy Co. Inc., debt to assets calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Total assets | 17,504) | 19,067) | 15,591) | 12,901) | 13,049) | 13,856) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.07 | 0.07 | 0.08 | 0.11 | 0.10 | 0.10 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | 0.19 | 0.18 | 0.19 | — | — | — | |
| Home Depot Inc. | 0.56 | 0.53 | 0.61 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.55 | 0.47 | 0.49 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.12 | 0.20 | 0.09 | 0.16 | — | — | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.25 | 0.24 | 0.26 | — | — | — | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | 0.35 | 0.36 | 0.41 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 1,229 ÷ 17,504 = 0.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Best Buy Co. Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Best Buy Co. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term debt | —) | 110) | —) | —) | —) | —) | |
| Current portion of long-term debt | 13) | 14) | 14) | 56) | 544) | 44) | |
| Long-term debt, excluding current portion | 1,216) | 1,253) | 1,257) | 1,332) | 811) | 1,321) | |
| Total debt | 1,229) | 1,377) | 1,271) | 1,388) | 1,355) | 1,365) | |
| Current portion of operating lease liabilities | 648) | 693) | 660) | —) | —) | —) | |
| Long-term operating lease liabilities, excluding current portion | 2,061) | 2,012) | 2,138) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,938) | 4,082) | 4,069) | 1,388) | 1,355) | 1,365) | |
| Total assets | 17,504) | 19,067) | 15,591) | 12,901) | 13,049) | 13,856) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.22 | 0.21 | 0.26 | 0.11 | 0.10 | 0.10 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.33 | 0.31 | 0.31 | — | — | — | |
| Home Depot Inc. | 0.64 | 0.62 | 0.73 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.66 | 0.56 | 0.60 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.44 | 0.50 | 0.47 | 0.16 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.40 | 0.38 | 0.40 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.44 | 0.45 | 0.50 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,938 ÷ 17,504 = 0.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Best Buy Co. Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Financial Leverage
Best Buy Co. Inc., financial leverage calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 17,504) | 19,067) | 15,591) | 12,901) | 13,049) | 13,856) | |
| Total Best Buy Co., Inc. shareholders’ equity | 3,020) | 4,587) | 3,479) | 3,306) | 3,612) | 4,709) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 5.80 | 4.16 | 4.48 | 3.90 | 3.61 | 2.94 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | 3.17 | 3.04 | 3.44 | — | — | — | |
| Home Depot Inc. | — | 21.39 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 32.52 | 20.02 | 9.47 | — | — | |
| TJX Cos. Inc. | 4.74 | 5.28 | 4.06 | 2.84 | — | — | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.18 | 3.82 | 4.44 | — | — | — | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | 4.38 | 4.26 | 5.72 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Financial leverage = Total assets ÷ Total Best Buy Co., Inc. shareholders’ equity
= 17,504 ÷ 3,020 = 5.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Best Buy Co. Inc. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Interest Coverage
Best Buy Co. Inc., interest coverage calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 2,454) | 1,798) | 1,541) | 1,464) | 1,000) | 1,228) | |
| Less: Gain from discontinued operations, net of tax | —) | —) | —) | —) | 1) | 21) | |
| Add: Income tax expense | 574) | 579) | 452) | 424) | 818) | 609) | |
| Add: Interest expense | 25) | 52) | 64) | 73) | 75) | 72) | |
| Earnings before interest and tax (EBIT) | 3,053) | 2,429) | 2,057) | 1,961) | 1,892) | 1,888) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 122.12 | 46.71 | 32.14 | 26.86 | 25.23 | 26.22 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | -1.51 | 22.09 | 15.69 | — | — | — | |
| Home Depot Inc. | 17.14 | 13.60 | 13.25 | 14.85 | — | — | |
| Lowe’s Cos. Inc. | 13.49 | 9.88 | 8.83 | 6.21 | — | — | |
| TJX Cos. Inc. | 37.80 | 1.46 | 75.57 | 65.36 | — | — | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 7.64 | 15.91 | 14.50 | — | — | — | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | 9.45 | 13.29 | 7.81 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,053 ÷ 25 = 122.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Best Buy Co. Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Best Buy Co. Inc., fixed charge coverage calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 2,454) | 1,798) | 1,541) | 1,464) | 1,000) | 1,228) | |
| Less: Gain from discontinued operations, net of tax | —) | —) | —) | —) | 1) | 21) | |
| Add: Income tax expense | 574) | 579) | 452) | 424) | 818) | 609) | |
| Add: Interest expense | 25) | 52) | 64) | 73) | 75) | 72) | |
| Earnings before interest and tax (EBIT) | 3,053) | 2,429) | 2,057) | 1,961) | 1,892) | 1,888) | |
| Add: Operating lease cost | 770) | 777) | 780) | 783) | 798) | 790) | |
| Earnings before fixed charges and tax | 3,823) | 3,206) | 2,837) | 2,744) | 2,690) | 2,678) | |
| Interest expense | 25) | 52) | 64) | 73) | 75) | 72) | |
| Operating lease cost | 770) | 777) | 780) | 783) | 798) | 790) | |
| Fixed charges | 795) | 829) | 844) | 856) | 873) | 862) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 4.81 | 3.87 | 3.36 | 3.21 | 3.08 | 3.11 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 0.47 | 5.24 | 4.63 | — | — | — | |
| Home Depot Inc. | 9.94 | 8.97 | 8.26 | 7.80 | — | — | |
| Lowe’s Cos. Inc. | 8.02 | 6.05 | 5.04 | 3.68 | — | — | |
| TJX Cos. Inc. | 3.17 | 1.04 | 3.43 | 3.39 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 2.82 | 5.29 | 5.11 | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | 3.70 | 5.63 | 3.72 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,823 ÷ 795 = 4.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Best Buy Co. Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |