Bath & Body Works Inc. (BBWI)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,084,000 | 1,232,000 | 1,979,000 | 3,568,000 | 1,499,000 |
| Short-term investments | US$ in thousands | — | — | — | 335,000 | — |
| Receivables | US$ in thousands | 224,000 | 226,000 | 240,000 | 269,000 | 306,000 |
| Total current liabilities | US$ in thousands | 1,289,000 | 1,379,000 | 1,290,000 | 2,826,000 | 2,372,000 |
| Quick ratio | 1.01 | 1.06 | 1.72 | 1.48 | 0.76 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,084,000K
+ $—K
+ $224,000K)
÷ $1,289,000K
= 1.01
The quick ratio of Bath & Body Works Inc. has shown fluctuations over the past five years. In the latest fiscal year ended on February 3, 2024, the quick ratio stood at 1.01, indicating that the company had just enough liquid assets to cover its current liabilities.
Compared to the previous year, the quick ratio decreased from 1.06 to 1.01, suggesting a slight weakening in the company's ability to meet its short-term obligations with its most liquid assets.
However, it is important to note that Bath & Body Works Inc. has maintained a relatively healthy quick ratio over the years, with a significant improvement from 0.76 in February 1, 2020, to 1.72 in January 29, 2022. This indicates that the company had a higher level of liquidity to cover its immediate liabilities in 2022.
Overall, the downward trend in the quick ratio from 2023 to 2024 may raise concerns about the company's short-term liquidity position, and investors and creditors may want to monitor this ratio closely in the upcoming periods to assess Bath & Body Works Inc.'s ability to meet its short-term obligations.
Peer comparison
Feb 3, 2024