Bath & Body Works Inc. (BBWI)

Short-term

Turnover ratios

The inventory turnover for Bath & Body Works Inc. has fluctuated over the periods provided, indicating variability in how efficiently the company is managing its inventory levels. The higher the turnover ratio, the better, as it signifies that inventory is being sold and replaced quickly. Bath & Body Works' inventory turnover ranged from a low of 3.12 to a high of 18.19 during the periods shown.

The receivables turnover ratio reflects how quickly the company is collecting payments from customers. Bath & Body Works Inc. has shown relatively stable receivables turnover ratios across the periods, ranging from 30.74 to 104.93. A higher turnover ratio suggests efficient management of accounts receivable.

The payables turnover ratio measures how quickly the company pays its suppliers. Bath & Body Works Inc.'s payables turnover ratios have varied, ranging from 6.26 to 30.16. A higher turnover ratio implies that the company is managing its payable obligations effectively.

The working capital turnover ratio assesses how efficiently the company is utilizing its working capital to generate sales. Bath & Body Works Inc. has shown fluctuations in its working capital turnover, ranging from 4.26 to 54.69. A higher turnover ratio indicates better utilization of working capital to generate sales revenue.

Overall, the activity ratios for Bath & Body Works Inc. suggest varying levels of efficiency in managing inventory, receivables, payables, and working capital across the periods analyzed. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational performance.

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Average number of days

The days of inventory on hand (DOH) for Bath & Body Works Inc. have fluctuated significantly over the periods analyzed. The company was able to decrease its DOH from 71.37 days in October 2023 to 42.13 days in February 2024, reflecting a potential improvement in inventory management efficiency.

In terms of days of sales outstanding (DSO), Bath & Body Works Inc. has generally maintained a relatively low DSO, indicating efficient collection of accounts receivable. The DSO decreased from 11.49 days in February 2024 to 7.30 days in April 2023, suggesting effective credit management practices.

The number of days of payables for the company also shows variability across the periods. Bath & Body Works Inc. was able to decrease its payables period from 37.13 days in October 2023 to 22.55 days in February 2024, potentially benefiting from extended payment terms with suppliers.

Overall, the activity ratios suggest that Bath & Body Works Inc. has made efforts to improve its inventory management, receivables collection, and payables management over the periods analyzed, which could positively impact the company's liquidity and operational efficiency.

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Long-term

Bath & Body Works Inc.'s long-term activity ratios indicate the efficiency of utilizing its assets to generate sales. The fixed asset turnover has shown a generally increasing trend over the periods analyzed, implying that the company has been able to generate more revenue from its fixed assets. This suggests that Bath & Body Works has effectively deployed its long-term assets to drive sales.

On the other hand, the total asset turnover ratio has fluctuated over the periods, with a peak in some quarters followed by decreases. This could imply variability in the company's ability to efficiently utilize all assets, not just fixed assets, to generate sales. Despite the fluctuations, the total asset turnover ratio is relatively stable over time.

Overall, Bath & Body Works Inc. appears to have been successful in efficiently using its fixed assets to generate sales, as evidenced by the increasing trend in fixed asset turnover. However, there may be areas for improvement in optimizing the utilization of all assets to drive sales consistently, as indicated by the fluctuations in the total asset turnover ratio.