Bath & Body Works Inc. (BBWI)
Current ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.64 | 1.64 | 2.33 | 1.97 | 1.37 |
February 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,115,000K ÷ $1,289,000K
= 1.64
The current ratio of Bath & Body Works Inc. has shown variations over the past five years. As of February 3, 2024, the current ratio stands at 1.64, remaining consistent with the previous year's ratio of 1.64. However, there was a decrease from the higher ratio of 2.33 reported on January 29, 2022. This decrease indicates a potential decrease in the company's ability to cover its short-term liabilities with its current assets compared to the previous year.
It is worth noting that the current ratio improved from 1.37 on February 1, 2020, to 1.97 on January 30, 2021, showing a positive trend in liquidity management during that period. The current ratio is an important indicator of a company's liquidity and ability to meet its short-term obligations. In the case of Bath & Body Works Inc., maintaining a current ratio above 1 signifies that the company has more current assets than current liabilities to meet its financial obligations in the short term. However, a lower current ratio compared to previous years may signify a need for closer monitoring of liquidity management strategies to ensure the company's financial health and stability.
Peer comparison
Feb 3, 2024