Bath & Body Works Inc. (BBWI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.80 | 0.00 | 0.00 | 0.86 | 0.00 | 0.90 | 0.00 | 0.89 | 0.00 | 0.88 | 0.00 | 0.95 | 0.00 | 0.99 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | 1.59 | — | — | 1.90 | — | 1.86 | — | 1.83 | — | 1.83 | — | 2.16 | — | 2.21 | — | — |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios for Bath & Body Works Inc. indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets that are financed by debt. Bath & Body Works Inc. shows a mixed trend in this ratio over the periods provided, with values ranging from 0.00 to 0.99. A lower debt-to-assets ratio is generally desirable as it indicates lower financial risk.
2. Debt-to-capital ratio: This ratio compares a company's total debt to its total capital, which includes both debt and equity. Bath & Body Works Inc. has shown fluctuations in its debt-to-capital ratio, with values ranging from 1.59 to 2.21. A lower ratio is usually preferred as it signifies a lower reliance on debt for financing.
3. Debt-to-equity ratio: This ratio evaluates the proportion of a company's financing that comes from debt relative to equity. In the data provided, Bath & Body Works Inc. shows no values for this ratio, indicating a lack of information or that the company may not have significant debt financing compared to equity.
4. Financial leverage ratio: This ratio measures the extent to which a company uses debt to finance its operations. The data does not provide values for this ratio for Bath & Body Works Inc., making it challenging to assess the company's leverage position.
Overall, from the available data, Bath & Body Works Inc. appears to maintain a relatively low debt-to-assets ratio, but the debt-to-capital ratio shows variability. However, the lack of information on the debt-to-equity ratio and financial leverage ratio limits a comprehensive assessment of the company's solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, the interest coverage ratio of Bath & Body Works Inc. has exhibited fluctuations over the period. The interest coverage ratio measures the company's ability to repay its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of covering its interest obligations.
In January 2022, the interest coverage ratio stood at 6.47, indicating a comfortable ability to cover interest payments. This ratio increased slightly over the following months, reaching 6.65 in April 2022 and 6.54 in July 2022. However, there was a notable decrease to 4.73 in July 31, 2022, suggesting a potential strain on the company's ability to cover interest expenses.
Subsequently, the interest coverage ratio declined further to 2.81 in October 2022 and 2.61 in October 31, 2022, signaling a significant decrease in the company's ability to cover interest payments. The ratio improved to 3.84 in January 2023 but decreased again to 2.37 in July 31, 2023, and further to 2.52 in October 28, 2023, and 2.68 in October 31, 2023.
The company saw a moderate improvement in its interest coverage ratio in the following periods, with the ratio reaching 5.36 in July 31, 2024. However, the ratio decreased slightly to 4.04 in October 31, 2024, and then increased to 4.10 in January 31, 2025.
Overall, the trend in Bath & Body Works Inc.'s interest coverage ratio shows some variability, with periods of strong coverage followed by declines in coverage levels. Investors and creditors should monitor this ratio closely to assess the company's ability to meet its financial obligations in terms of interest payments.