BBY Quick Ratio Analysis

The quick ratio measures whether a company can cover its immediate short-term debts using its most liquid assets, like cash and marketable securities, without selling inventory; Best Buy’s 0.34x means it has $0.34 of such liquid assets for every $1 of current liabilities due soon.

This is far below the sector median of 0.69x, placing the company at the 18th percentile among Consumer Cyclical peers, so most comparable companies hold a stronger short-term liquidity buffer. The trend data is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be inferred from the single historical value of 0.34x. Because the level is low and no trend offsets it, the metric points to elevated liquidity risk if cash flows weaken or debt payments come due quickly. That risk is real but not disqualifying, since a retailer’s ability to convert inventory to cash can offset a low quick ratio in practice. Overall, this metric supports the NEUTRAL verdict by highlighting a clear weakness that is balanced by the company’s operational model, rather than pushing the view strongly toward bearish or bullish.

Frequently Asked Questions

Closest Sector Peers