Bath & Body Works Inc Financials
Bath & Body Works Inc (BBWI) reported $7.3B in revenue for fiscal year 2025, down 0.2% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
BBWI’s dominant mechanic is resilient cash generation funding shareholder returns while a shrinking sales base and rising overhead compress operating profitability.
In FY2025, operating cash flow of$1.1B exceeded net income of$649M , while inventory and receivables both fell from FY2024; cash conversion therefore benefited from working-capital release, not just reported earnings. That helps explain why free cash flow margin reached11.9% even as net margin fell to8.9% —cash economics improved while accounting profitability weakened.
Revenue has remained broadly flat-to-lower through FY2025, while operating margin slipped from
Debt declined to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Bath & Body Works Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Bath & Body Works Inc has an operating margin of 15.4%, meaning the company retains $15 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is down from 17.3% the prior year.
Bath & Body Works Inc's revenue declined 0.2% year-over-year, from $7.3B to $7.3B. This contraction results in a growth score of 29/100.
Bath & Body Works Inc's current ratio of 1.27 indicates adequate short-term liquidity, earning a score of 32/100. The company can meet its near-term obligations, though with limited headroom.
Bath & Body Works Inc converts 11.9% of revenue into free cash flow ($865.0M). This strong cash generation earns a score of 68/100.
Bath & Body Works Inc scores 2.25, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Bath & Body Works Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Bath & Body Works Inc generates $1.70 in operating cash flow ($1.1B OCF vs $649.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Bath & Body Works Inc earns $4.08 in operating income for every $1 of interest expense ($1.1B vs $276.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Bath & Body Works Inc generated $7.3B in revenue in fiscal year 2025. This represents a decrease of 0.2% from the prior year.
Bath & Body Works Inc's EBITDA was $1.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 10.9% from the prior year.
Bath & Body Works Inc reported $649.0M in net income in fiscal year 2025. This represents a decrease of 18.7% from the prior year.
Not reported for fiscal year 2025.
Cash & Balance Sheet
Bath & Body Works Inc generated $865.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 31.1% from the prior year.
Bath & Body Works Inc held $953.0M in cash against $3.6B in long-term debt as of fiscal year 2025.
Bath & Body Works Inc paid $0.80 per share in dividends in fiscal year 2025. That is unchanged from the prior year.
Margins & Returns
Bath & Body Works Inc's gross margin was 43.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.5 percentage points from the prior year.
Bath & Body Works Inc's operating margin was 15.4% in fiscal year 2025, reflecting core business profitability. This is down 1.9 percentage points from the prior year.
Bath & Body Works Inc's net profit margin was 8.9% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.0 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Bath & Body Works Inc spent $401.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. That is unchanged from the prior year.
Bath & Body Works Inc invested $237.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 4.9% from the prior year.
Not reported for fiscal year 2025.
BBWI Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.3B-0.2% | $7.3B-1.6% | $7.4B-1.7% | $7.6B-4.1% | $7.9B+22.5% | $6.4B+19.0% | $5.4B-59.2% | $13.2B+4.8% | $12.6B+0.5% | $12.6B+3.5% | $12.2B+6.1% | $11.5B+6.3% | $10.8B+3.0% | $10.5B+0.9% | $10.4B |
| Cost of Revenue | $4.1B+0.7% | $4.1B-2.9% | $4.2B-2.6% | $4.3B+6.9% | $4.0B+20.6% | $3.3B+10.6% | $3.0B-63.8% | $8.3B+8.7% | $7.7B+3.0% | $7.4B+7.2% | $7.0B+4.6% | $6.6B+4.8% | $6.3B+4.5% | $6.1B-3.7% | $6.3B |
| Gross Profit | $3.2B-1.4% | $3.2B-0.1% | $3.2B-0.6% | $3.3B-15.6% | $3.9B+24.5% | $3.1B+29.7% | $2.4B-51.3% | $4.9B-1.2% | $5.0B-3.2% | $5.1B-1.5% | $5.2B+8.2% | $4.8B+8.6% | $4.4B+1.0% | $4.4B+8.1% | $4.1B |
| SG&A Expenses | $2.1B+4.8% | $2.0B+0.9% | $2.0B+3.8% | $1.9B+1.8% | $1.8B+23.7% | $1.5B+10.8% | $1.3B-62.2% | $3.6B+10.3% | $3.2B+3.5% | $3.1B+3.7% | $3.0B+5.5% | $2.9B+6.3% | $2.7B-1.3% | $2.7B+0.8% | $2.7B |
| Operating Income | $1.1B-11.1% | $1.3B-1.5% | $1.3B-6.6% | $1.4B-31.5% | $2.0B+25.2% | $1.6B+54.2% | $1.0B-15.9% | $1.2B-28.4% | $1.7B-13.7% | $2.0B-8.6% | $2.2B+12.2% | $2.0B+12.0% | $1.7B+10.8% | $1.6B+27.1% | $1.2B |
| Interest Expense | $276.0M-11.5% | $312.0M-9.6% | $345.0M-0.9% | $348.0M-10.3% | $388.0M-10.2% | $432.0M+16.8% | $370.0M-3.9% | $385.0M-5.2% | $406.0M+3.0% | $394.0M+18.0% | $334.0M+3.1% | $324.0M+3.2% | $314.0M-0.6% | $316.0M+28.5% | $246.0M |
| Income Tax | $233.0M+1.3% | $230.0M+60.8% | $143.0M-43.0% | $251.0M-27.9% | $348.0M+35.4% | $257.0M+73.6% | $148.0M-30.5% | $213.0M-35.3% | $329.0M-38.8% | $538.0M-21.0% | $681.0M+14.6% | $594.0M+9.4% | $543.0M+2.8% | $528.0M+40.1% | $377.0M |
| Net Income | $649.0M-18.7% | $798.0M-9.1% | $878.0M+9.8% | $800.0M-40.0% | $1.3B+57.9% | $844.0M+330.6% | -$366.0M-156.8% | $644.0M-34.5% | $983.0M-15.1% | $1.2B-7.6% | $1.3B+20.2% | $1.0B+15.4% | $903.0M+19.9% | $753.0M-11.4% | $850.0M |
| EPS (Diluted) | N/A | $3.61-6.0% | $3.84+12.9% | $3.40-13.7% | $3.94+28.3% | $3.07+86.1% | $1.65 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Not reported in any period shown, so not listed: R&D Expenses.
BBWI Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.1B+4.0% | $4.9B-10.8% | $5.5B-0.6% | $5.5B-8.8% | $6.0B-47.9% | $11.6B+14.3% | $10.1B+25.2% | $8.1B-0.7% | $8.1B-0.3% | $8.2B-3.8% | $8.5B+13.6% | $7.5B+4.9% | $7.1B+18.4% | $6.0B-1.5% | $6.1B |
| Current Assets | $2.0B+10.8% | $1.8B-13.8% | $2.1B-6.7% | $2.3B-24.7% | $3.0B-46.1% | $5.6B+71.9% | $3.2B-0.5% | $3.3B-1.0% | $3.3B-5.0% | $3.5B-16.6% | $4.2B+29.9% | $3.2B+1.6% | $3.1B+42.9% | $2.2B-6.9% | $2.4B |
| Cash & Equivalents | $953.0M+41.4% | $674.0M-37.8% | $1.1B-12.0% | $1.2B-37.7% | $2.0B-44.5% | $3.6B+138.0% | $1.5B+6.1% | $1.4B-6.7% | $1.5B-21.7% | $1.9B-24.1% | $2.5B+51.6% | $1.7B0.0% | $1.7B+117.5% | $773.0M-17.3% | $935.0M |
| Inventory | $699.0M-4.8% | $734.0M+3.4% | $710.0M+0.1% | $709.0M0.0% | $709.0M+24.0% | $572.0M-55.6% | $1.3B+3.1% | $1.2B+0.6% | $1.2B+13.1% | $1.1B-2.3% | $1.1B+8.3% | $1.0B-11.1% | $1.2B+16.0% | $1.0B+0.7% | $997.0M |
| Accounts Receivable | $180.0M-12.2% | $205.0M-8.5% | $224.0M-0.9% | $226.0M-5.8% | $240.0M+62.2% | $148.0M-51.6% | $306.0M-16.6% | $367.0M+18.4% | $310.0M+5.4% | $294.0M+12.6% | $261.0M+3.6% | $252.0M+3.3% | $244.0M+20.2% | $203.0M-6.9% | $218.0M |
| Goodwill | $628.0M0.0% | $628.0M0.0% | $628.0M0.0% | $628.0M0.0% | $628.0M0.0% | $628.0M0.0% | $628.0M-53.4% | $1.3B0.0% | $1.3B0.0% | $1.3B+2.3% | $1.3B0.0% | $1.3B0.0% | $1.3B0.0% | $1.3B-0.9% | $1.3B |
| Total Liabilities | $6.3B+1.5% | $6.3B-11.7% | $7.1B-7.9% | $7.7B+2.1% | $7.5B-38.3% | $12.2B+5.2% | $11.6B+29.7% | $9.0B+0.6% | $8.9B0.0% | $8.9B+1.7% | $8.8B+17.4% | $7.5B-0.5% | $7.5B+6.6% | $7.0B+17.8% | $6.0B |
| Current Liabilities | $1.6B+29.2% | $1.2B-4.5% | $1.3B-6.5% | $1.4B+6.9% | $1.3B-54.4% | $2.8B+19.1% | $2.4B+19.4% | $2.0B-2.2% | $2.0B+0.8% | $2.0B+7.4% | $1.9B+11.7% | $1.7B-8.1% | $1.8B+18.7% | $1.5B+0.8% | $1.5B |
| Long-Term Debt | $3.6B-7.0% | $3.9B-11.5% | $4.4B-9.7% | $4.9B+0.2% | $4.9B-23.8% | $6.4B+16.0% | $5.5B-4.4% | $5.7B+0.6% | $5.7B+0.1% | $5.7B-0.3% | $5.7B+21.0% | $4.7B-0.8% | $4.8B+6.3% | $4.5B+28.6% | $3.5B |
| Total Equity | -$1.3B+7.5% | -$1.4B+14.9% | -$1.6B+26.2% | -$2.2B-45.3% | -$1.5B-129.3% | -$662.0M+55.8% | -$1.5B-72.5% | -$869.0M-15.4% | -$753.0M-3.3% | -$729.0M-181.5% | -$259.0M-1538.9% | $18.0M+104.9% | -$370.0M+63.5% | -$1.0B-840.9% | $137.0M |
| Retained Earnings | -$1.4B+9.1% | -$1.6B+14.1% | -$1.8B+23.4% | -$2.4B-33.2% | -$1.8B-26.9% | -$1.4B+34.9% | -$2.2B-47.2% | -$1.5B-3.3% | -$1.4B-799.5% | $205.0M-34.9% | $315.0M+35.2% | $233.0M+297.5% | -$118.0M+82.4% | -$672.0M-2900.0% | $24.0M |
BBWI Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.1B+24.4% | $886.0M-7.1% | $954.0M-16.6% | $1.1B-23.3% | $1.5B-26.8% | $2.0B+65.0% | $1.2B-10.2% | $1.4B-2.1% | $1.4B-29.3% | $2.0B-1.8% | $2.0B+13.5% | $1.8B+43.1% | $1.2B-7.6% | $1.4B+6.7% | $1.3B |
| Capital Expenditures | $237.0M+4.9% | $226.0M-24.2% | $298.0M-9.1% | $328.0M+21.5% | $270.0M+18.4% | $228.0M-50.2% | $458.0M-27.2% | $629.0M-11.0% | $707.0M-28.6% | $990.0M+36.2% | $727.0M+1.7% | $715.0M+3.5% | $691.0M+17.5% | $588.0M+38.0% | $426.0M |
| Free Cash Flow | $865.0M+31.1% | $660.0M+0.6% | $656.0M-19.6% | $816.0M-33.2% | $1.2B-32.5% | $1.8B+132.8% | $778.0M+4.0% | $748.0M+7.0% | $699.0M-30.1% | $1.0B-23.1% | $1.3B+21.4% | $1.1B+92.3% | $557.0M-27.0% | $763.0M-9.2% | $840.0M |
| Investing Cash Flow | -$227.0M-40.1% | -$162.0M+43.4% | -$286.0M+12.8% | -$328.0M-26.6% | -$259.0M-18.3% | -$219.0M+54.4% | -$480.0M+21.2% | -$609.0M+12.8% | -$698.0M+16.2% | -$833.0M-88.0% | -$443.0M+36.6% | -$699.0M-6.7% | -$655.0M-23.4% | -$531.0M-135.0% | -$226.0M |
| Financing Cash Flow | -$599.0M+47.1% | -$1.1B-38.9% | -$815.0M+47.8% | -$1.6B+51.0% | -$3.2B-622.6% | $610.0M+191.6% | -$666.0M+23.6% | -$872.0M+22.6% | -$1.1B+36.1% | -$1.8B-146.5% | -$716.0M+22.1% | -$919.0M-696.8% | $154.0M+115.7% | -$982.0M+20.6% | -$1.2B |
| Dividends Paid | $167.0M-5.6% | $177.0M-2.7% | $182.0M-2.2% | $186.0M+55.0% | $120.0M+44.6% | $83.0M-75.0% | $332.0M-50.2% | $666.0M-2.9% | $686.0M-45.9% | $1.3B+8.3% | $1.2B+69.5% | $691.0M+98.0% | $349.0M-75.9% | $1.4B+26.7% | $1.1B |
| Share Buybacks | $401.0M0.0% | $401.0M+170.9% | $148.0M-88.7% | $1.3B-33.2% | $2.0B | $0 | $0-100.0% | $198.0M-55.6% | $446.0M+2.5% | $435.0M-9.9% | $483.0M+455.2% | $87.0M+45.0% | $60.0M-90.5% | $629.0M-47.1% | $1.2B |
BBWI Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 43.7%-0.5pp | 44.3%+0.7pp | 43.6%+0.5pp | 43.1%-5.8pp | 48.9%+0.8pp | 48.1%+4.0pp | 44.2%+7.2pp | 37.0%-2.3pp | 39.3%-1.5pp | 40.8%-2.1pp | 42.8%+0.8pp | 42.0%+0.9pp | 41.1%-0.8pp | 41.9%+2.8pp | 39.1% |
| Operating Margin | 15.4%-1.9pp | 17.3%0.0pp | 17.3%-0.9pp | 18.2%-7.3pp | 25.5%+0.6pp | 24.9%+5.7pp | 19.2%+9.9pp | 9.3%-4.3pp | 13.7%-2.2pp | 15.9%-2.1pp | 18.0%+1.0pp | 17.1%+0.9pp | 16.2%+1.1pp | 15.0%+3.1pp | 11.9% |
| Net Margin | 8.9%-2.0pp | 10.9%-0.9pp | 11.8%+1.2pp | 10.6%-6.3pp | 16.9%+3.8pp | 13.1%+19.9pp | -6.8%-11.6pp | 4.9%-2.9pp | 7.8%-1.4pp | 9.2%-1.1pp | 10.3%+1.2pp | 9.1%+0.7pp | 8.4%+1.2pp | 7.2%-1.0pp | 8.2% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 5788.9% | N/A | N/A | 620.4% |
| Return on Assets | 12.8%-3.6pp | 16.4%+0.3pp | 16.1%+1.5pp | 14.6%-7.6pp | 22.1%+14.8pp | 7.3%+10.9pp | -3.6%-11.6pp | 8.0%-4.1pp | 12.1%-2.1pp | 14.2%-0.6pp | 14.8%+0.8pp | 13.9%+1.3pp | 12.7%+0.2pp | 12.5%-1.4pp | 13.9% |
| Current Ratio | 1.27-0.2x | 1.48-0.2x | 1.640.0x | 1.64-0.7x | 2.33+0.4x | 1.97+0.6x | 1.37-0.3x | 1.640.0x | 1.62-0.1x | 1.72-0.5x | 2.22+0.3x | 1.91+0.2x | 1.73+0.3x | 1.43-0.1x | 1.55 |
| Debt-to-Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 262.33 | N/A | N/A | 25.41 |
| FCF Margin | 11.9%+2.8pp | 9.0%+0.2pp | 8.8%-2.0pp | 10.8%-4.7pp | 15.5%-12.6pp | 28.1%+13.8pp | 14.4%+8.7pp | 5.7%+0.1pp | 5.5%-2.4pp | 8.0%-2.7pp | 10.7%+1.3pp | 9.3%+4.2pp | 5.2%-2.1pp | 7.3%-0.8pp | 8.1% |
Note: Shareholder equity is negative (-$1.3B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
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Where Bath & Body Works Inc Ranks
Frequently Asked Questions
What is Bath & Body Works Inc's annual revenue?
Bath & Body Works Inc (BBWI) reported $7.3B in total revenue for fiscal year 2025. This represents a -0.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Bath & Body Works Inc's revenue growing?
Bath & Body Works Inc (BBWI) revenue declined by 0.2% year-over-year, from $7.3B to $7.3B in fiscal year 2025.
Is Bath & Body Works Inc profitable?
Yes, Bath & Body Works Inc (BBWI) reported a net income of $649.0M in fiscal year 2025, with a net profit margin of 8.9%.
What is Bath & Body Works Inc's EBITDA?
Bath & Body Works Inc (BBWI) had EBITDA of $1.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Bath & Body Works Inc have?
As of fiscal year 2025, Bath & Body Works Inc (BBWI) had $953.0M in cash and equivalents against $3.6B in long-term debt.
What is Bath & Body Works Inc's gross margin?
Bath & Body Works Inc (BBWI) had a gross margin of 43.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Bath & Body Works Inc's operating margin?
Bath & Body Works Inc (BBWI) had an operating margin of 15.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Bath & Body Works Inc's net profit margin?
Bath & Body Works Inc (BBWI) had a net profit margin of 8.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Bath & Body Works Inc pay dividends?
Yes, Bath & Body Works Inc (BBWI) paid $0.80 per share in dividends during fiscal year 2025.
What is Bath & Body Works Inc's free cash flow?
Bath & Body Works Inc (BBWI) generated $865.0M in free cash flow during fiscal year 2025. This represents a 31.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Bath & Body Works Inc's operating cash flow?
Bath & Body Works Inc (BBWI) generated $1.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Bath & Body Works Inc's total assets?
Bath & Body Works Inc (BBWI) had $5.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Bath & Body Works Inc's capital expenditures?
Bath & Body Works Inc (BBWI) invested $237.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Bath & Body Works Inc's current ratio?
Bath & Body Works Inc (BBWI) had a current ratio of 1.27 as of fiscal year 2025, which is considered adequate.
What is Bath & Body Works Inc's return on assets (ROA)?
Bath & Body Works Inc (BBWI) had a return on assets of 12.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Bath & Body Works Inc's debt-to-equity ratio negative or not reported?
Bath & Body Works Inc (BBWI) has negative shareholder equity of -$1.3B as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Bath & Body Works Inc's Altman Z-Score?
Bath & Body Works Inc (BBWI) has an Altman Z-Score of 2.25, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Bath & Body Works Inc's Piotroski F-Score?
Bath & Body Works Inc (BBWI) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Bath & Body Works Inc's earnings high quality?
Bath & Body Works Inc (BBWI) has an earnings quality ratio of 1.70x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Bath & Body Works Inc cover its interest payments?
Bath & Body Works Inc (BBWI) has an interest coverage ratio of 4.08x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Bath & Body Works Inc?
Bath & Body Works Inc (BBWI) scores 56 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.