Debt-to-Equity Ratio

Best Buy’s current Debt-to-Equity (D/E) ratio of 0.38x means the company uses $0.38 of debt for every $1.00 of shareholder equity — a low leverage level that indicates conservative financing.

At 0.38x, it sits below the sector median of 0.59x and ranks in the 40th percentile among Consumer Cyclical peers, showing less reliance on debt than most competitors. The year-over-year change is not available, but the ratio dropped 71.6% quarter-over-quarter from 1.34x to 0.38x, reflecting a sharp reduction in debt or increase in equity over that single quarter. The combination of a low D/E and a steep downward trend suggests reduced financial risk in the near term, but the abrupt move warrants scrutiny for possible one-time events like a debt repayment or equity raise. This metric supports the overall NEUTRAL verdict, as the conservative leverage profile is positive, yet the dramatic quarterly shift introduces uncertainty that tempers any strong bullish or bearish conclusion.

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