Quick Ratio
Higher than 20% of Consumer Cyclical sector peers
Updated 219h ago
Sector Performance
20th percentileBBY
0.34x
Sector Median
0.69x
Sector Avg
1.77x
Deep Analysis
Best Buy’s quick ratio of 0.34x means the company has only $0.34 in highly liquid assets—cash, marketable securities, and receivables—for every $1 of short-term liabilities, signaling tight liquidity.
This is well below the sector median of 0.75x, and the firm ranks in the 16th percentile among Consumer Cyclical peers, indicating most competitors hold a stronger cash position. The trend data is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, and no previous eight-quarter values were provided. Without a trend, the extremely low quick ratio suggests a potential risk if short-term obligations came due quickly, but there is no evidence of recent deterioration or improvement. This metric, showing a weak liquidity level with an unknown direction, does not directly contradict the overall NEUTRAL verdict—it flags a risk factor that is offset by the lack of trend information, leaving the assessment balanced.
Frequently Asked Questions
What does the Quick Ratio tell investors about BBY?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does BBY's Quick Ratio compare to its sector?
BBY's Quick Ratio of 0.34x compares to a Consumer Cyclical sector median of 0.69x, placing it in the 20th percentile.
Who are BBY's closest peers by Quick Ratio?
The closest Consumer Cyclical peers by Quick Ratio include: TSLA (0.60x), ROST (0.88x), JD (0.41x), CPRI (0.39x), AEO (0.38x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.34x
Sector Median
0.69x
Sector Avg
1.77x
How BBY's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.