Bath & Body Works Inc. (BBWI)
Debt-to-assets ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,388,000 | 4,862,000 | 4,854,000 | 6,366,000 | 5,487,000 |
| Total assets | US$ in thousands | 5,463,000 | 5,494,000 | 6,026,000 | 11,571,000 | 10,125,000 |
| Debt-to-assets ratio | 0.80 | 0.88 | 0.81 | 0.55 | 0.54 |
February 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,388,000K ÷ $5,463,000K
= 0.80
The debt-to-assets ratio of Bath & Body Works Inc. has fluctuated over the past five years. As of February 3, 2024, the ratio stood at 0.80, indicating that 80% of the company's assets were financed through debt. This represents a decrease from the previous year when the ratio was 0.88. The trend over the past five years shows some variability, with the ratio peaking at 0.88 in January 2023 but generally staying within a moderate range.
A higher debt-to-assets ratio suggests that the company relies more on debt to finance its operations and investments, which could increase financial risk. Conversely, a lower ratio indicates a more conservative approach with less reliance on debt financing. In Bath & Body Works' case, the ratio has been relatively stable in recent years, signaling a balance between debt and assets in the company's capital structure. It would be important to monitor future changes in this ratio to assess the company's financial health and risk profile.
Peer comparison
Feb 3, 2024