Bath & Body Works Inc. (BBWI)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,279,000 | 1,301,000 | 1,774,000 | 1,834,000 | 1,890,000 | 1,394,000 | 912,000 | 870,000 | 828,000 | 1,278,000 | 1,733,000 | 1,737,000 | 1,741,000 | 1,322,000 | 898,000 | 974,000 | 1,646,661 | 2,281,661 | 2,355,661 | 2,303,661 |
| Interest expense (ttm) | US$ in thousands | 312,000 | 322,000 | 331,000 | 338,000 | 340,000 | 340,000 | 340,000 | 345,000 | 350,000 | 350,000 | 350,000 | 347,000 | 344,000 | 344,000 | 344,000 | 347,000 | 348,000 | 349,000 | 354,000 | 356,000 |
| Interest coverage | 4.10 | 4.04 | 5.36 | 5.43 | 5.56 | 4.10 | 2.68 | 2.52 | 2.37 | 3.65 | 4.95 | 5.01 | 5.06 | 3.84 | 2.61 | 2.81 | 4.73 | 6.54 | 6.65 | 6.47 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,279,000K ÷ $312,000K
= 4.10
The interest coverage ratio for Bath & Body Works Inc. fluctuated over the period analyzed. Starting from January 31, 2022, where the interest coverage was 6.47, the ratio remained relatively stable around 6.5 until July 31, 2022. However, in the following periods until October 31, 2023, there was a notable decline in the interest coverage ratio, reaching a low of 2.37 on July 31, 2023.
From January 31, 2024, there was a slight improvement in the interest coverage ratio to 4.10, followed by a further increase to 5.56 on February 3, 2024. The ratio then remained around 5 in the subsequent periods until October 31, 2024, where it decreased to 4.04. Finally, as of January 31, 2025, the interest coverage ratio stood at 4.10.
Overall, the trend in Bath & Body Works Inc.'s interest coverage indicates some variability, with periods of stability followed by declines and subsequent improvements. It is essential for stakeholders to monitor the company's ability to cover its interest obligations, as a lower interest coverage ratio may indicate potential financial risks.
Peer comparison
Jan 31, 2025