Bath & Body Works Inc. (BBWI)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,286,000 | 1,243,000 | 1,224,000 | 1,278,000 | 1,377,000 | 1,603,000 | 1,810,000 | 1,952,000 | 2,009,000 | 2,000,000 | 2,027,000 | 1,906,000 | 1,605,000 | 817,000 | 230,000 | 142,000 | 259,000 | 977,000 | 1,182,000 | 1,235,000 |
| Total assets | US$ in thousands | 5,463,000 | 5,243,000 | 5,195,000 | 5,363,000 | 5,494,000 | 5,133,000 | 4,901,000 | 4,860,000 | 6,026,000 | 6,031,000 | 10,392,000 | 10,546,000 | 11,571,000 | 11,161,000 | 10,880,000 | 9,439,000 | 10,125,000 | 10,630,000 | 10,618,000 | 10,998,000 |
| Operating ROA | 23.54% | 23.71% | 23.56% | 23.83% | 25.06% | 31.23% | 36.93% | 40.16% | 33.34% | 33.16% | 19.51% | 18.07% | 13.87% | 7.32% | 2.11% | 1.50% | 2.56% | 9.19% | 11.13% | 11.23% |
February 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,286,000K ÷ $5,463,000K
= 23.54%
Operating Return on Assets (Operating ROA) measures how efficiently Bath & Body Works Inc. is generating operating profits relative to its total assets. Looking at the trend over the past few quarters, Bath & Body Works Inc.'s Operating ROA has been fluctuating.
In the most recent quarter, the Operating ROA was 23.54%, showing a slight decrease from the previous quarter's 23.71%. This indicates that the company may be experiencing some challenges in generating operating profits relative to its total assets.
However, it is essential to note that there was a significant decline in Operating ROA from July 2021 to May 2021, dropping from 33.16% to 7.32%. This sharp decrease could be a cause for concern as it suggests a significant decrease in the efficiency of utilizing assets to generate operating profits during that period.
On the other hand, there have been periods of strong performance in the Operating ROA, such as in July 2022 when it reached 36.93% and in April 2022 when it peaked at 40.16%. These high figures indicate that Bath & Body Works Inc. was able to effectively utilize its assets to generate operating profits efficiently.
Overall, while the Operating ROA of Bath & Body Works Inc. has shown some fluctuations, it is crucial for the company to focus on maintaining a consistent and high level of efficiency in generating operating profits relative to its total assets in order to ensure long-term financial health and sustainability.
Peer comparison
Feb 3, 2024