Bath & Body Works Inc. (BBWI)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.26% | 45.46% | 43.56% | 43.06% | 45.13% |
| Operating profit margin | 17.33% | 18.05% | 17.30% | 18.20% | 19.08% |
| Pretax margin | 14.07% | 14.34% | 13.74% | 13.82% | 14.57% |
| Net profit margin | 10.92% | 12.33% | 11.82% | 10.58% | 11.09% |
Bath & Body Works Inc.'s profitability ratios show varying trends over the years. The gross profit margin, which indicates the profitability of the core business operations before considering other expenses, has ranged from 43.06% to 45.46% over the past five years, with a slight increase observed in the most recent year.
The operating profit margin, a measure of efficiency in managing operating expenses, has fluctuated between 17.30% and 19.08% during the same period, showing relatively stable performance overall but with a slight decrease in the latest year.
The pretax margin, reflecting the company's ability to control non-operating expenses, has ranged from 13.74% to 14.57%, with a gradual increase in the initial years followed by a slight decline in the most recent year.
The net profit margin, which represents the percentage of revenue that translates into profit after all expenses are deducted, has fluctuated between 10.58% and 12.33% over the period, with a peak in the fourth year and a slight decrease in the most recent year.
Overall, Bath & Body Works Inc. has shown consistent profitability in its core operations, as evidenced by the gross profit margin. However, there have been fluctuations in the operating, pretax, and net profit margins, indicating the company's varying success in managing operating and non-operating expenses to generate profits over the years.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.99% | 23.52% | 23.52% | 25.05% | 25.05% |
| Return on assets (ROA) | 16.38% | 16.07% | 16.07% | 14.56% | 14.56% |
| Return on total capital | — | 49.47% | — | — | 52.67% |
| Return on equity (ROE) | — | — | — | — | — |
Bath & Body Works Inc.'s profitability ratios indicate consistent and strong performance over the years.
1. Operating Return on Assets (Operating ROA): The company has maintained a high Operating ROA, ranging from 23.52% to 25.99%. This indicates that Bath & Body Works is efficient in generating operating income relative to its total assets.
2. Return on Assets (ROA): The Return on Assets ratio has also been consistently healthy, ranging from 14.56% to 16.38%. This shows that the company is effective in utilizing its assets to generate profits.
3. Return on Total Capital: Bath & Body Works has shown strong returns on total capital, with figures of 52.67% and 49.47% in the available data. This suggests that the company is effectively utilizing both equity and debt to generate returns for its capital providers.
4. Return on Equity (ROE): While ROE data is not available for the periods provided, it's worth noting that ROE measures the return generated on the shareholders' equity. Bath & Body Works might not have disclosed this ratio for strategic or competitive reasons.
Overall, Bath & Body Works Inc. demonstrates strong profitability ratios, indicating efficient management of assets and capital to generate profits for its stakeholders.