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Bath & Body Works (NYSE:BBWI) Financial Strength

: 4 (As of Oct. 2023)
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Bath & Body Works has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Bath & Body Works's Interest Coverage for the quarter that ended in Oct. 2023 was 2.63. Bath & Body Works's debt to revenue ratio for the quarter that ended in Oct. 2023 was 0.91. As of today, Bath & Body Works's Altman Z-Score is 2.62.


Competitive Comparison

For the Specialty Retail subindustry, Bath & Body Works's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bath & Body Works's Financial Strength falls into.



Bath & Body Works Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Bath & Body Works's Interest Expense for the months ended in Oct. 2023 was $-84 Mil. Its Operating Income for the months ended in Oct. 2023 was $221 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Oct. 2023 was $5,517 Mil.

Bath & Body Works's Interest Coverage for the quarter that ended in Oct. 2023 is

Interest Coverage=-1*Operating Income (Q: Oct. 2023 )/Interest Expense (Q: Oct. 2023 )
=-1*221/-84
=2.63

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Bath & Body Works's Debt to Revenue Ratio for the quarter that ended in Oct. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Oct. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(192 + 5517) / 6248
=0.91

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Bath & Body Works has a Z-score of 2.62, indicating it is in Grey Zones. This implies that Bath & Body Works is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.62 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Bath & Body Works  (NYSE:BBWI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Bath & Body Works has the Financial Strength Rank of 4.


Bath & Body Works Financial Strength Related Terms

Thank you for viewing the detailed overview of Bath & Body Works's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Bath & Body Works (NYSE:BBWI) 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