Bath & Body Works Inc. (BBWI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.80 | 0.86 | 0.90 | 0.89 | 0.88 | 0.95 | 0.99 | 1.00 | 0.81 | 0.80 | 0.51 | 0.51 | 0.55 | 0.57 | 0.58 | 0.53 | 0.54 | 0.52 | 0.52 | 0.52 |
| Debt-to-capital ratio | 1.59 | 1.90 | 1.86 | 1.83 | 1.83 | 2.16 | 2.21 | 2.21 | 1.46 | 1.53 | 1.29 | 1.11 | 1.12 | 1.33 | 1.44 | 1.59 | 1.38 | 1.29 | 1.21 | 1.19 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Bath & Body Works Inc. indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has generally been declining over the past few quarters, from 0.52 in May 2019 to 0.80 in February 2024. This trend suggests that the company has been reducing its reliance on debt to finance its assets.
The debt-to-capital ratio also shows a downward trend over the same period, indicating a reduction in the proportion of debt in the company's capital structure. The ratio decreased from 1.19 in May 2019 to 1.59 in February 2024.
The absence of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive analysis of Bath & Body Works Inc.'s solvency from all angles. Nonetheless, the declining trend seen in the debt-to-assets and debt-to-capital ratios suggests a positive movement towards a stronger financial position and lower risk of insolvency.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.96 | 3.84 | 3.71 | 3.80 | 4.03 | 4.62 | 4.63 | 5.31 | 5.32 | 5.66 | 5.95 | 4.76 | 3.26 | 0.72 | -1.10 | -0.88 | 0.41 | 2.41 | 3.02 | 3.23 |
The interest coverage ratio for Bath & Body Works Inc. has fluctuated over the periods indicated in the table. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
From the data provided:
- The interest coverage ratio ranged from a low of -1.10 to a high of 5.95 over the last few quarters.
- The company experienced a significant decline in interest coverage in the most recent periods, with negative ratios in some instances, indicating potential challenges in meeting interest obligations with current operating income.
- It is important for Bath & Body Works Inc. to closely monitor and improve its interest coverage ratio to ensure it can comfortably cover its interest expenses, maintain creditworthiness, and avoid potential financial distress.