Bath & Body Works Inc. (BBWI)
Working capital turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,118,000 | 7,175,000 | 7,203,000 | 7,253,000 | 7,300,000 | 7,438,000 | 7,510,000 | 9,197,000 | 9,306,000 | 11,098,000 | 12,442,000 | 11,542,000 | 11,726,000 | 11,614,000 | 11,357,000 | 9,078,000 | 10,053,000 | 10,198,000 | 10,296,000 | 13,240,000 |
| Total current assets | US$ in thousands | 2,115,000 | 1,959,000 | 1,893,000 | 2,080,000 | 2,266,000 | 1,948,000 | 1,754,000 | 1,752,000 | 3,009,000 | 2,985,000 | 4,514,000 | 4,612,000 | 5,579,000 | 4,927,000 | 4,505,000 | 2,849,000 | 3,245,000 | 2,926,000 | 2,653,000 | 2,947,000 |
| Total current liabilities | US$ in thousands | 1,289,000 | 1,409,000 | 1,213,000 | 1,277,000 | 1,379,000 | 1,452,000 | 1,258,000 | 1,240,000 | 1,290,000 | 1,435,000 | 2,625,000 | 2,680,000 | 2,826,000 | 3,330,000 | 3,433,000 | 2,683,000 | 2,372,000 | 2,543,000 | 2,216,000 | 2,197,000 |
| Working capital turnover | 8.62 | 13.05 | 10.59 | 9.03 | 8.23 | 15.00 | 15.14 | 17.96 | 5.41 | 7.16 | 6.59 | 5.97 | 4.26 | 7.27 | 10.59 | 54.69 | 11.52 | 26.63 | 23.56 | 17.65 |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,118,000K ÷ ($2,115,000K – $1,289,000K)
= 8.62
The working capital turnover ratio for Bath & Body Works Inc. has shown fluctuations over the past several quarters. The ratio measures the efficiency of the company in generating sales revenue from its working capital. A higher ratio indicates better efficiency in utilizing working capital to generate sales.
Looking at the trend, the working capital turnover ratio has generally been on an upward trajectory since May 2021, reaching a peak of 17.96 in April 2022. This suggests that the company was able to generate more sales revenue from its working capital during this period.
However, there was a significant decline in the ratio in the following quarters, with a notable low of 4.26 in January 2023. This sharp decrease could indicate challenges in managing working capital efficiently to support sales activities during that period.
Subsequently, the ratio improved in the later quarters, surpassing 10 in several instances, indicating a rebound in the company's ability to generate sales from its working capital.
Overall, the working capital turnover ratio of Bath & Body Works Inc. has demonstrated variability in recent quarters, highlighting the importance of closely monitoring and managing working capital to optimize operational performance and financial efficiency.
Peer comparison
Feb 3, 2024