Allowance for Credit Losses on Financing Receivables
Best Buy Allowance for Credit Losses on Financing Receivables increased by 7.1% to $15.00M in Q3 2025 compared to the prior quarter. Year-over-year, this metric declined by 6.3%, from $16.00M to $15.00M. Over 4 years (FY 2021 to FY 2025), Allowance for Credit Losses on Financing Receivables shows a downward trend with a -11.1% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests higher perceived credit risk in the company's financing portfolio, while a decrease suggests improved credit quality.
Detailed definition
This is the valuation allowance established against financing receivables, such as loans or leases provided to customers...
Peer comparison
Common for companies with large captive finance divisions; comparable to loan loss reserves at financial institutions.
financing_receivable_allowance_for_credit_lossesHistorical Data
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $25.00M | $24.00M | $24.00M | $31.00M | $25.00M | $21.00M | $20.00M | $22.00M | $18.00M | $18.00M | $19.00M | $23.00M | $17.00M | $16.00M | $16.00M | $20.00M | $15.00M | $14.00M | $15.00M |
| QoQ Change | — | -4.0% | +0.0% | +29.2% | -19.4% | -16.0% | -4.8% | +10.0% | -18.2% | +0.0% | +5.6% | +21.1% | -26.1% | -5.9% | +0.0% | +25.0% | -25.0% | -6.7% | +7.1% |
| YoY Change | — | — | — | — | +0.0% | -12.5% | -16.7% | -29.0% | -28.0% | -14.3% | -5.0% | +4.5% | -5.6% | -11.1% | -15.8% | -13.0% | -11.8% | -12.5% | -6.3% |
Allowance for Credit Losses on Financing Receivables at Other Companies
Frequently Asked Questions
- What is Best Buy's allowance for credit losses on financing receivables?
- Best Buy (BBY) reported allowance for credit losses on financing receivables of $15.00M in Q3 2025.
- How has Best Buy's allowance for credit losses on financing receivables changed year-over-year?
- Best Buy's allowance for credit losses on financing receivables decreased by 6.3% year-over-year, from $16.00M to $15.00M.
- What is the long-term trend for Best Buy's allowance for credit losses on financing receivables?
- Over 4 years (2021 to 2025), Best Buy's allowance for credit losses on financing receivables has grown at a -11.1% compound annual growth rate (CAGR), from $32.00M to $20.00M.
- What does allowance for credit losses on financing receivables mean?
- The reserve set aside to cover potential losses from loans or financing provided to customers.