Analysis of Debt
Total Debt (Carrying Amount)
Best Buy Co. Inc., balance sheet: debt
US$ in millions
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).
The total debt carrying amount remained relatively stable between January 2017 and January 2022, oscillating within a range of 1,229 million to 1,388 million US dollars. While there were intermittent fluctuations, the overall trajectory indicates a slight contraction in total leverage toward the end of the period.
- Total Debt Trajectory
- Total debt peaked in February 2019 at 1,388 million US dollars. Following this peak, the balance experienced a general decline, reaching its lowest point of 1,229 million US dollars by January 2022. This represents a total decrease of approximately 11.5% from the peak value, suggesting a gradual reduction in the total debt burden.
- Long-Term Debt Dynamics
- Long-term debt, excluding the current portion, serves as the primary component of the debt structure. A significant volatility was observed between February 2018 and February 2019, where the balance dropped to 811 million US dollars before rebounding sharply to 1,332 million US dollars. From 2019 onward, long-term debt exhibited a consistent, marginal downward trend, ending at 1,216 million US dollars in January 2022.
- Short-Term Obligations and Reclassifications
- The current portion of long-term debt showed a notable spike to 544 million US dollars in February 2018, which coincided with the dip in long-term debt, indicating a significant reclassification of maturing obligations. Subsequent to February 2019, these current obligations decreased substantially and remained stagnant between 13 million and 14 million US dollars. Additionally, a temporary increase in short-term debt to 110 million US dollars was recorded in January 2021, representing the only instance of short-term borrowing within the analyzed period.
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Total Debt (Fair Value)
| Jan 29, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Short-term debt | —) |
| Long-term debt, excluding finance lease obligations | 1,205) |
| Finance lease obligations | 40) |
| Total total debt (fair value) | 1,245) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.01 |
Based on: 10-K (reporting date: 2022-01-29).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 3.02%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.45% | 500) | 22) | |
| 1.95% | 650) | 13) | |
| 2.40% | 40) | 1) | |
| Total | 1,190) | 36) | |
| 3.02% | |||
Based on: 10-K (reporting date: 2022-01-29).
1 US$ in millions
2 Weighted-average interest rate = 100 × 36 ÷ 1,190 = 3.02%