Bath & Body Works Inc. (BBWI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,366,000 | 1,325,000 | 1,287,000 | 1,318,000 | 1,398,000 | 1,609,000 | 1,633,000 | 1,932,000 | 2,070,000 | 2,359,000 | 2,649,000 | 2,150,000 | 1,416,000 | 289,000 | -415,000 | -322,000 | 152,000 | 915,000 | 1,155,000 | 1,245,000 |
| Long-term debt | US$ in thousands | 4,388,000 | 4,497,000 | 4,668,000 | 4,781,000 | 4,862,000 | 4,860,000 | 4,858,000 | 4,856,000 | 4,854,000 | 4,852,000 | 5,346,000 | 5,344,000 | 6,366,000 | 6,364,000 | 6,269,000 | 5,034,000 | 5,487,000 | 5,477,000 | 5,475,000 | 5,749,000 |
| Total stockholders’ equity | US$ in thousands | -1,627,000 | -2,125,000 | -2,155,000 | -2,171,000 | -2,206,000 | -2,609,000 | -2,663,000 | -2,659,000 | -1,518,000 | -1,676,000 | -1,189,000 | -534,000 | -662,000 | -1,568,000 | -1,908,000 | -1,861,000 | -1,499,000 | -1,242,000 | -933,000 | -902,000 |
| Return on total capital | 49.47% | 55.86% | 51.21% | 50.50% | 52.64% | 71.48% | 74.40% | 87.94% | 62.05% | 74.28% | 63.72% | 44.70% | 24.82% | 6.03% | -9.52% | -10.15% | 3.81% | 21.61% | 25.43% | 25.69% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,366,000K ÷ ($4,388,000K + $-1,627,000K)
= 49.47%
The return on total capital for Bath & Body Works Inc. has exhibited fluctuations over the past several quarters, ranging from negative values to double-digit percentages.
The return on total capital was notably high in the first half of FY 2023, with values exceeding 50%, indicating efficient utilization of both debt and equity to generate profits. Subsequently, there was a decline in the return on total capital in the latter half of FY 2023, reaching negative values in some periods, which may suggest challenges in maintaining profitability and efficiently allocating capital during those quarters.
It is essential for Bath & Body Works Inc. to closely monitor and manage its return on total capital to ensure sustainable growth and profitability in the long term. Periods of lower returns may require a reassessment of investment strategies and capital allocation practices to enhance overall financial performance.
Peer comparison
Feb 3, 2024