Bath & Body Works (Bath & Body Works) Interest Coverage

: 8.09 (As of Jan. 2024)

View and export this data going back to 1992. Start your Free Trial

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 by its Interest Expense. Bath & Body Works's Operating Income for the three months ended in Jan. 2024 was $696 Mil. Bath & Body Works's Interest Expense for the three months ended in Jan. 2024 was $-86 Mil. Bath & Body Works's interest coverage for the quarter that ended in Jan. 2024 was 8.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Bath & Body Works's Interest Coverage or its related term are showing as below:

BBWI' s Interest Coverage Range Over the Past 10 Years
Min: 2.81 Med: 4.11 Max: 6.56
Current: 3.73

BBWI's Interest Coverage is ranked worse than
67.24% of 751 companies
in the Retail - Cyclical industry
Industry Median: 7.81 vs BBWI: 3.73

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

Bath & Body Works Interest Coverage Historical Data

The historical data trend for Bath & Body Works's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Bath & Body Works Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

2.81

3.71

5.18

3.95

3.72

Bath & Body Works Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																7.58	2.03	2.19	2.63	8.09

Competitive Comparison

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

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

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

Bath & Body Works Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

Bath & Body Works's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Bath & Body Works's Interest Expense was $-345 Mil. Its Operating Income was $1,285 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,392 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	1285	/	-345
	=	3.72

Bath & Body Works's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Bath & Body Works's Interest Expense was $-86 Mil. Its Operating Income was $696 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,392 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	696	/	-86
	=	8.09

The higher the ratio, the stronger the company's Financial Strength is.

Bath & Body Works (NYSE:BBWI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Bath & Body Works Interest Coverage Related Terms

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

Bath & Body Works (Bath & Body Works) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bath & Body Works Inc (NYSE:BBWI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BBWI:Mexico LTD0:Germany B1BW34:Brazil

Address

Three Limited Parkway, Columbus, OH, USA, 43230

Website

https://www.bbwinc.com

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