What is Bath & Body Works Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Bath & Body Works's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Bath & Body Works's Probability of Financial Distress (%)
For the Specialty Retail subindustry, Bath & Body Works's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bath & Body Works's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Probability of Financial Distress (%) falls into.
Bath & Body Works Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -10.36 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Bath & Body Works (Bath & Body Works) Business Description
Traded in Other Exchanges
Address
Three Limited Parkway, Columbus, OH, USA, 43230
Bath & Body Works is a specialty home fragrance and fragrant body care retailer operating under the Bath & Body Works, C.O. Bigelow, and White Barn brands. The company generates most of its business in North America, with less than 5% of sales from international markets in fiscal 2022. For fiscal 2022, 72% of sales stemmed from the brick-and-mortar network (which was composed of more than 1,800 retail stores), similar to 2021 levels, as consumer shopping patterns remained to normal. Future growth is expected from store reformatting, digital and international channels, as well as adjacent category expansion.
Executives
| Eva C Boratto |
officer: Chief Financial Officer |
55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328 |
| Wendy C. Arlin |
officer: EVP and CFO |
THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Thomas Kuhn |
director |
C/O INTERVAL LEISURE GROUP, INC., 6262 SUNSET DRIVE, MIAMI FL 33143 |
| Steven E Voskuil |
director |
5405 WINDWARD PARKWAY, ALPHARETTA GA 30004 |
| Lucy Brady |
director |
C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Gina Boswell |
director, officer: Chief Executive Officer |
MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212 |
| Thomas E. Mazurek |
officer: Chief Supply Chain Officer |
C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Alessandro Bogliolo |
director |
727 FIFTH AVENUE, NEW YORK NY 10022 |
| Juan Rajlin |
director |
C/O BATH & BODY WORKS, INC., THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Robert H Schottenstein |
director |
|
| Sarah E Nash |
director |
200 MILIK STREET, CARTERET NJ 07008 |
| James L. Bersani |
officer: EVP & President - Real Estate |
THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Michael C. Wu |
officer: Chief Legal Officer & Secy. |
4 LIMITED PARKWAY, REYNOLDSBURG OH 43068 |
| Christopher T. Cramer |
officer: Chief Operating Officer |
THREE LIMITED PARKWAY, COLUMBUS OH 43230 |
| Leslie H. Wexner |
director, 10 percent owner, officer: Chairman and CEO |
8000 WALTON PKWY, STE 100, NEW ALBANY OH 43054 |
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