Bath & Body Works Inc. (BBWI)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.46% | 45.13% | 52.82% | 27.26% | 19.10% |
| Operating profit margin | 18.05% | 19.08% | 27.52% | 14.12% | 8.32% |
| Pretax margin | 14.34% | 14.57% | 23.03% | 9.70% | -1.74% |
| Net profit margin | 12.33% | 11.09% | 18.26% | 7.43% | -2.93% |
Bath & Body Works Inc. has exhibited consistent improvement in its profitability over the past five years based on the profitability ratios. The gross profit margin has fluctuated but seems to be overall stable, ranging from 19.10% in 2020 to 52.82% in 2022. This indicates the company's ability to effectively manage its cost of goods sold.
The operating profit margin has shown a positive trend, increasing from 8.32% in 2020 to 27.52% in 2022, indicating strong operational efficiency and effective cost management. This improvement suggests that the company has been able to control its operating expenses well, leading to higher profitability.
Moreover, the pretax margin has also shown an upward trend, indicating an improvement in the company's ability to generate earnings before taxes. The pretax margin increased from -1.74% in 2020 to 23.03% in 2022. This growth showcases the company's ability to generate income efficiently before accounting for taxes.
Finally, the net profit margin has seen steady growth over the years, showcasing an increase from -2.93% in 2020 to 18.26% in 2022. This positive trajectory demonstrates that Bath & Body Works Inc. has been successful in managing its overall expenses and generating more profit from its revenue over the years.
In conclusion, Bath & Body Works Inc. has shown consistent improvement in its profitability ratios over the past five years, indicating efficient cost management, operational effectiveness, and overall financial performance.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 23.52% | 25.05% | 33.34% | 13.86% | 10.27% |
| Return on assets (ROA) | 16.07% | 14.56% | 22.12% | 7.29% | -3.61% |
| Return on total capital | 49.47% | 52.67% | 62.02% | 26.88% | 3.81% |
| Return on equity (ROE) | — | — | — | — | — |
Bath & Body Works Inc. has shown a consistent improvement in its operating return on assets (Operating ROA) over the past five years, with the ratio increasing from 10.27% in 2020 to 23.52% in 2024. This indicates that the company has been more efficient in generating operating profits relative to its total assets.
Similarly, the Return on Assets (ROA) has also shown an upward trend, with a notable increase from -3.61% in 2020 to 16.07% in 2024. This indicates a significant improvement in the company's ability to generate profits from its assets.
The Return on Total Capital has exhibited a substantial improvement over the same period, from 3.81% in 2020 to 49.47% in 2024, indicating that the company has been able to generate higher returns for its capital providers.
However, it is important to note that data on Return on Equity (ROE) is not provided, thus preventing a comprehensive analysis of the company's profitability from the perspective of its shareholders.