Bath & Body Works Inc. (BBWI)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,118,000 | 7,212,000 | 7,299,000 | 11,356,000 | 12,496,000 |
| Total current assets | US$ in thousands | 2,115,000 | 2,266,000 | 3,009,000 | 5,579,000 | 3,245,000 |
| Total current liabilities | US$ in thousands | 1,289,000 | 1,379,000 | 1,290,000 | 2,826,000 | 2,372,000 |
| Working capital turnover | 8.62 | 8.13 | 4.25 | 4.12 | 14.31 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,118,000K ÷ ($2,115,000K – $1,289,000K)
= 8.62
Bath & Body Works Inc.'s working capital turnover has fluctuated over the past five years, as indicated by the data provided. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales revenue.
In 2024, the working capital turnover ratio stood at 8.62, reflecting an improvement compared to the previous year's ratio of 8.13. This suggests that the company has become more effective in using its working capital to support its operations and drive sales.
Looking back further, in 2022 and 2021, the working capital turnover ratios were notably lower at 4.25 and 4.12, respectively. This indicates that the company was less efficient in those years in converting working capital into sales revenue.
The highest working capital turnover ratio was observed in 2020 at 14.31, indicating exceptional efficiency in utilizing working capital to generate revenue. This could be attributed to effective inventory management and receivables collection during that period.
Overall, Bath & Body Works Inc.'s working capital turnover has shown variability over the years, with the latest ratio demonstrating an improvement in the efficiency of working capital utilization compared to prior years.
Peer comparison
Feb 3, 2024