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Stock Analysis on Net

Best Buy Co. Inc. (NYSE:BBY)

This company has been moved to the archive! The financial data has not been updated since December 6, 2022.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Best Buy Co. Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Accounts payable 38.87 36.60 33.92 40.75 37.34 35.97
Unredeemed gift card liabilities 1.81 1.66 1.80 2.25 2.95 3.08
Deferred revenue 6.30 3.73 3.21 3.46 3.47 3.02
Accrued compensation and related expenses 4.83 3.80 2.63 3.74 4.30 2.58
Accrued liabilities 5.40 5.10 5.81 7.61 7.67 6.43
Short-term debt 0.00 0.58 0.00 0.00 0.00 0.00
Current portion of operating lease liabilities 3.70 3.63 4.23 0.00 0.00 0.00
Current portion of long-term debt 0.07 0.07 0.09 0.43 4.17 0.32
Current liabilities 60.98% 55.18% 51.70% 58.24% 59.90% 51.40%
Long-term operating lease liabilities, excluding current portion 11.77 10.55 13.71 0.00 0.00 0.00
Long-term liabilities 3.05 3.64 4.21 5.81 6.20 5.08
Long-term debt, excluding current portion 6.95 6.57 8.06 10.32 6.22 9.53
Non-current liabilities 21.77% 20.76% 25.99% 16.14% 12.41% 14.61%
Total liabilities 82.75% 75.94% 77.69% 74.37% 72.32% 66.01%
Preferred stock, $1.00 par value; none issued and outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $0.10 par value 0.13 0.14 0.17 0.21 0.21 0.22
Additional paid-in capital 0.00 0.00 0.00 0.00 0.00 0.00
Retained earnings 15.24 22.20 20.26 23.14 25.06 31.75
Accumulated other comprehensive income 1.88 1.72 1.89 2.28 2.41 2.01
Total Best Buy Co., Inc. shareholders’ equity 17.25% 24.06% 22.31% 25.63% 27.68% 33.99%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

An analysis of the capital structure reveals a significant shift toward a more leveraged financial position between January 2017 and January 2022. Total liabilities increased steadily from 66.01% to 82.75% of total liabilities and equity, while total shareholders' equity experienced a corresponding decline, falling from 33.99% to 17.25% over the same period.

Current Liability Trends
Current liabilities consistently represent the largest portion of the company's financing, rising from 51.40% in 2017 to 60.98% in 2022. Accounts payable remains the primary driver of this category, fluctuating between 33.92% and 40.75%. A notable increase in deferred revenue is observed in the final year of the period, reaching 6.30%, nearly doubling the levels seen in previous years.
Non-Current Liability and Lease Obligations
A structural change in non-current liabilities is evident starting in 2020. The emergence of operating lease liabilities—both current (averaging approximately 3.8%) and long-term (ranging from 10.55% to 13.71%)—indicates a shift in reporting or a change in lease strategies. Long-term debt, excluding the current portion, has remained relatively stable, fluctuating between 6.22% and 10.32%, suggesting that the increase in total liabilities is driven more by operational obligations and lease accounting than by long-term debt issuance.
Shareholders' Equity Erosion
The decline in total shareholders' equity is primarily attributable to a reduction in retained earnings, which dropped from 31.75% in 2017 to 15.24% in 2022. Common stock and accumulated other comprehensive income have remained marginal components of the overall capital structure, contributing minimally to the total equity balance.

The overall trend indicates a strategic movement toward a higher debt-to-equity profile. The combination of increasing total liabilities and decreasing retained earnings suggests a heightened reliance on creditor financing and potentially an aggressive return of capital to shareholders, resulting in a leaner equity cushion by the end of the analyzed period.

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