Bath & Body Works Inc. (BBWI)

Based on the provided solvency ratios for Bath & Body Works Inc., the following trends can be observed:

1. Debt-to-assets ratio:
- The debt-to-assets ratio has fluctuated over the past five years, ranging from 0.54 in 2020 to 0.88 in 2023. However, there was a notable decrease in 2021 to 0.55, followed by a slight increase to 0.80 in 2024. This indicates that the company's reliance on debt in relation to its total assets has been inconsistent.

2. Debt-to-capital ratio:
- The debt-to-capital ratio also shows variability over the years, with values ranging from 1.12 in 2021 to 1.83 in 2023. It peaked in 2023 and has since decreased to 1.59 in 2024. This ratio demonstrates the proportion of the company's capital that is financed through debt, and the recent decrease could indicate a potential effort to reduce debt dependency.

3. Debt-to-equity ratio:
- The data for the debt-to-equity ratio is missing for all years, suggesting that information on the company's debt levels in relation to its equity is not provided in the table. This ratio would have been valuable in assessing the company's financial structure and risk profile.

4. Financial leverage ratio:
- Similarly, there is no data available for the financial leverage ratio across the five years. This ratio typically measures the extent to which a company uses debt to finance its operations and can provide insights into the company's financial risk and stability.

In summary, based on the available debt-related solvency ratios, Bath & Body Works Inc.'s debt management has been somewhat inconsistent, with fluctuations in its debt-to-assets and debt-to-capital ratios. However, the absence of data for the debt-to-equity and financial leverage ratios limits a comprehensive assessment of the company's solvency and leverage positions. Further information would be needed to fully evaluate the company's financial health and risk management strategies.

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Coverage ratios

The interest coverage ratio for Bath & Body Works Inc. has shown fluctuations over the past five years. In 2024, the ratio stood at 3.96, indicating that the company generated operating income nearly four times the amount needed to cover its interest expenses. This was slightly lower compared to the previous year where the ratio was 4.02.

In 2022, the interest coverage ratio improved significantly to 5.33, reflecting a stronger ability to meet interest obligations with operating earnings. However, in 2021, the ratio decreased to 3.55, suggesting a slight decline in the company's ability to cover interest payments.

The most significant fluctuation was observed in 2020, where the interest coverage ratio was merely 0.41. This sharp decline indicates that Bath & Body Works Inc. had challenges generating sufficient operating income to cover its interest expenses effectively during that period.

Overall, while the interest coverage ratio has varied over the years, it is essential for Bath & Body Works Inc. to aim for a higher ratio consistently to ensure it has a comfortable margin of safety in meeting its interest obligations from operating income.