Best Buy's Cash Stockpile Continues to Climb
With an impeccable balance sheet, the company has lots of options.
With a considerable cash hoard and virtually no long-term debt, electronics kingpin Best Buy (BBY) has a balance sheet most retailers would drool over. As the company’s margins continue to grow and inventory management improves, cash balances will only go up from here.
Best Buy on Tuesday reported earnings for its quarter ended August 26 of $0.36 a share, beating First Call estimates of $0.34. Gross profit margins rose to 20.5% from 19.7% last year, and the company's cash balance increased 79% year over year, to $850 million.
Mark Sellers does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.