What is Bath & Body Works Return-on-Tangible-Asset?
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Bath & Body Works's annualizedNet Income for the quarter that ended in Jan. 2024 was $2,316 Mil. Bath & Body Works's average total tangible assets for the quarter that ended in Jan. 2024 was $4,560 Mil. Therefore, Bath & Body Works's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 was 50.79%.
The historical rank and industry rank for Bath & Body Works's Return-on-Tangible-Asset or its related term are showing as below:
BBWI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -4.75 Med: 16.38 Max: 20.03
Current: 19.26
During the past 13 years, Bath & Body Works's highest Return-on-Tangible-Asset was 20.03%. The lowest was -4.75%. And the median was 16.38%.
BBWI's Return-on-Tangible-Asset is ranked better than 96.77% of 1115
companies
in the Retail - Cyclical industry
Industry Median: 2.28
vs BBWI: 19.26
Bath & Body Works Return-on-Tangible-Asset Historical Data
The historical data trend for Bath & Body Works's Return-on-Tangible-Asset 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.
Competitive Comparison of Bath & Body Works's Return-on-Tangible-Asset
For the Specialty Retail subindustry, Bath & Body Works's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Return-on-Tangible-Asset falls into.
Bath & Body Works Return-on-Tangible-Asset Calculation
Bath & Body Works's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jan. 2024 is calculated as:
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jan. 2024) net income data.
Bath & Body Works (NYSE:BBWI) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Bath & Body Works Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Bath & Body Works's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Bath & Body Works (Bath & Body Works) Business Description
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.
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