Show how you calculated these ratios by referencing in the numbers reported in Best Buy’s annual report.

In order to calculate Best Buy’s financial ratios, we can refer to the numbers reported in their annual report. For example, if we want to calculate the company’s debt-to-equity ratio, we would need to divide total liabilities by shareholders’ equity (which can both be found in their statement of financial position).

For the 2019 fiscal year, Best Buy reported total liabilities of $17.3 billion and shareholders’ equity of $8.6 billion. This gives us a debt-to-equity ratio of 2:1 ($17.3 billion divided by $8.6 billion). This means that for every dollar invested by shareholders, there is an additional dollar that must be paid back as debts or loans from other sources.