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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Bath & Body Works's Sloan Ratio for the quarter that ended in Apr. 2026 was -3.65%.
As of Apr. 2026, Bath & Body Works has a Sloan Ratio of -3.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Bath & Body Works (MEX:BBWI) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Apr. 2026, Bath & Body Works has a Sloan Ratio of -3.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Bath & Body Works Sloan Ratio % Related Terms
Bath & Body Works Sloan Ratio % Historical Data
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The historical data trend for Bath & Body Works's Sloan Ratio % can be seen below:
* 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.
MEX:BBWI vs MNSO, RH, ASO: Sloan Ratio % Comparison
For the Specialty Retail subindustry, Bath & Body Works's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Bath & Body Works's Sloan Ratio for the fiscal year that ended in Jan. 2026 is calculated as
Bath & Body Works's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 1203.008 (Jul. 2025 ) + 1428.081 (Oct. 2025 ) + 6991.768 (Jan. 2026 ) + 3205.446 (Apr. 2026 ) = MXN12,828 Mil.
Bath & Body Works's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was -808.271 (Jul. 2025 ) + 1483.72 (Oct. 2025 ) + 15215.336 (Jan. 2026 ) + 4273.928 (Apr. 2026 ) = MXN20,165 Mil.
Bath & Body Works's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -1052.632 (Jul. 2025 ) + -1335.348 (Oct. 2025 ) + -1040.958 (Jan. 2026 ) + -735.676 (Apr. 2026 ) = MXN-4,165 Mil.
* 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 (MEX:BBWI) has a Sloan Ratio % of -3.65% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Bath & Body Works and its competitors.
Is Bath & Body Works' Sloan Ratio % too high?
Bath & Body Works' current Sloan Ratio % is -3.65%. Overall, Bath & Body Works has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bath & Body Works' Sloan Ratio % compare to MNSO and RH?
Bath & Body Works' Sloan Ratio % of -3.65% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Bath & Body Works and its competitors. Bath & Body Works's current Sloan Ratio % is -3.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bath & Body Works stock overvalued right now?
Based on GuruFocus' analysis, Bath & Body Works (MEX:BBWI) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN591.40, compared to a current price of MXN345.00 — trading 41.7% below its estimated fair value. The current Sloan Ratio % is -3.65%. Bath & Body Works' overall GF Score™ is 51/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Bath & Body Works (MEX:BBWI), the current Sloan Ratio % is -3.65% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bath & Body Works (MEX:BBWI) Overvalued in 2026?
Based on GuruFocus' analysis, Bath & Body Works stock appears to be undervalued.
The current stock price of MXN345.00 is trading 41.7% below its estimated GF Value™ of MXN591.40.
GuruFocus considers Bath & Body Works to be Significantly Undervalued.
Key valuation signals for MEX:BBWI:
Sloan Ratio %: -3.65%
GF Value™: MXN591.40 vs. price of MXN345.00 (41.7% below fair value)
No single metric tells the full story. See the MEX:BBWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 just 4% of sales from international markets in fiscal 2025. For fiscal 2025, 77% of sales stemmed from the brick-and-mortar network of more than 1,900 retail stores, similar to 2024 levels, as consumer shopping patterns remained normal. Future growth is expected from store upgrades, digital and international channels, as well as adjacent category expansions like men's and lip.
51GF Score
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