Bath & Body Works Inc. (BBWI)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,366,000 | 1,399,000 | 2,069,000 | 1,533,000 | 152,000 |
| Long-term debt | US$ in thousands | 4,388,000 | 4,862,000 | 4,854,000 | 6,366,000 | 5,487,000 |
| Total stockholders’ equity | US$ in thousands | -1,627,000 | -2,206,000 | -1,518,000 | -662,000 | -1,499,000 |
| Return on total capital | 49.47% | 52.67% | 62.02% | 26.88% | 3.81% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,366,000K ÷ ($4,388,000K + $-1,627,000K)
= 49.47%
Over the past five years, Bath & Body Works Inc. has demonstrated varying levels of return on total capital, ranging from 3.81% in February 2020 to 62.02% in January 2022. The return on total capital indicates the efficiency of the company in generating profits from its total capital employed, encompassing both debt and equity.
The highest return of 62.02% in January 2022 suggests that Bath & Body Works was able to generate significant earnings relative to the total capital invested in the business during that period. This could be attributed to effective capital allocation strategies, strong operational performance, and possibly advantageous market conditions.
On the other hand, the lowest return of 3.81% in February 2020 may indicate challenges or inefficiencies faced by the company during that particular period. This could be due to various factors such as economic downturns, increased expenses, or strategic missteps.
Overall, the trend in return on total capital for Bath & Body Works Inc. shows some volatility, with fluctuations observed over the past five years. Investors and stakeholders may closely monitor this metric to assess the company's ability to generate returns on its capital and evaluate its financial performance and efficiency over time.
Peer comparison
Feb 3, 2024