Name: Best Buy Co. Inc. (NYSE:BBY) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Accounts payable	6,803)	6,979)	5,288)	5,257)	4,873)	4,984)
Unredeemed gift card liabilities	316)	317)	281)	290)	385)	427)
Deferred revenue	1,103)	711)	501)	446)	453)	418)
Accrued compensation and related expenses	845)	725)	410)	482)	561)	358)
Accrued liabilities	946)	972)	906)	982)	1,001)	891)
Short-term debt	—)	110)	—)	—)	—)	—)
Current portion of operating lease liabilities	648)	693)	660)	—)	—)	—)
Current portion of long-term debt	13)	14)	14)	56)	544)	44)
Current liabilities	10,674)	10,521)	8,060)	7,513)	7,817)	7,122)
Long-term operating lease liabilities, excluding current portion	2,061)	2,012)	2,138)	—)	—)	—)
Long-term liabilities	533)	694)	657)	750)	809)	704)
Long-term debt, excluding current portion	1,216)	1,253)	1,257)	1,332)	811)	1,321)
Non-current liabilities	3,810)	3,959)	4,052)	2,082)	1,620)	2,025)
Total liabilities	14,484)	14,480)	12,112)	9,595)	9,437)	9,147)
Preferred stock, $1.00 par value; none issued and outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.10 par value	23)	26)	26)	27)	28)	31)
Additional paid-in capital	—)	—)	—)	—)	—)	—)
Retained earnings	2,668)	4,233)	3,158)	2,985)	3,270)	4,399)
Accumulated other comprehensive income	329)	328)	295)	294)	314)	279)
Total Best Buy Co., Inc. shareholders’ equity	3,020)	4,587)	3,479)	3,306)	3,612)	4,709)
Total liabilities and equity	17,504)	19,067)	15,591)	12,901)	13,049)	13,856)

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).

Total liabilities exhibit a consistent upward trajectory, increasing from 9,147 million US dollars in January 2017 to 14,484 million US dollars by January 2022. This growth is primarily driven by a shift in the composition of obligations, specifically the recognition of operating lease liabilities starting in 2020, which significantly expanded both current and non-current liability profiles.

Current Liabilities Trends: Current liabilities rose from 7,122 million US dollars in 2017 to 10,674 million US dollars in 2022. A primary driver of this increase is accounts payable, which grew from 4,984 million US dollars to 6,803 million US dollars over the period. Additionally, deferred revenue showed substantial growth, increasing from 418 million US dollars in 2017 to 1,103 million US dollars in 2022, suggesting an increase in prepaid services or obligations. The introduction of current lease liabilities in 2020 added approximately 648 to 693 million US dollars to the annual current obligations.
Non-Current Liabilities and Long-Term Debt: Non-current liabilities experienced a sharp increase between 2019 and 2020, moving from 2,082 million US dollars to 4,052 million US dollars. This surge is attributed to the reporting of long-term operating lease liabilities, which reached 2,138 million US dollars in 2020 and remained above 2,000 million US dollars through 2022. In contrast, long-term debt excluding the current portion remained relatively stable, fluctuating between 811 million US dollars and 1,332 million US dollars, ending at 1,216 million US dollars in 2022.
Shareholders' Equity Analysis: Total shareholders' equity demonstrates a general declining trend, falling from 4,709 million US dollars in 2017 to 3,020 million US dollars in 2022. This contraction is largely reflected in retained earnings, which show significant volatility. Retained earnings peaked at 4,233 million US dollars in 2021 before dropping sharply to 2,668 million US dollars in 2022. Common stock values remained marginal and slightly declined over the period, and accumulated other comprehensive income stayed relatively flat, ranging between 279 million US dollars and 329 million US dollars.

The overall financial structure reveals a transition toward a higher leverage ratio. The combination of rising total liabilities and diminishing shareholders' equity indicates a shift in the company's capital structure, with a larger proportion of assets being financed through debt and lease obligations rather than equity by the end of the analyzed period.

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