Bath & Body Works Inc. (BBWI)
Quick ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 674,000 | 1,084,000 | 1,084,000 | 1,232,000 | 1,232,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 224,000 | — | — | 226,000 |
| Total current liabilities | US$ in thousands | 1,231,000 | 1,289,000 | 1,289,000 | 1,379,000 | 1,379,000 |
| Quick ratio | 0.55 | 1.01 | 0.84 | 0.89 | 1.06 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($674,000K
+ $—K
+ $—K)
÷ $1,231,000K
= 0.55
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. Bath & Body Works Inc.'s quick ratio has fluctuated over the years based on the provided data.
As of January 28, 2023, Bath & Body Works Inc.'s quick ratio was 1.06, indicating that the company had $1.06 in liquid assets available to cover each dollar of its current liabilities. This suggests a strong ability to meet short-term obligations with readily available assets.
However, the quick ratio decreased to 0.89 by January 31, 2023, followed by a further decline to 0.84 by January 31, 2024. These lower quick ratios may raise concerns as they indicate a decrease in the company's ability to cover its current liabilities with its quick assets.
The quick ratio improved to 1.01 by February 3, 2024, suggesting a slight recovery in the company's liquidity position. However, by January 31, 2025, the quick ratio dropped notably to 0.55, indicating a potential liquidity challenge for Bath & Body Works Inc. as it might have less liquid assets available to cover its short-term obligations.
Overall, the fluctuating quick ratios of Bath & Body Works Inc. reflect changes in the company's liquidity position over the years, with lower ratios potentially signaling increased risk in meeting short-term financial obligations. It would be prudent for stakeholders to monitor the company's liquidity closely based on these ratios.
Peer comparison
Jan 31, 2025