Bath & Body Works has a Cash Ratio of 0.84. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Bath & Body Works's Cash Ratio or its related term are showing as below:
BBWI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.63 Med: 0.93 Max: 1.53
Current: 0.84
During the past 13 years, Bath & Body Works's highest Cash Ratio was 1.53. The lowest was 0.63. And the median was 0.93.
BBWI's Cash Ratio is ranked better than 73.36% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 0.38
vs BBWI: 0.84
Bath & Body Works Cash Ratio Historical Data
The historical data trend for Bath & Body Works's Cash 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.
Competitive Comparison of Bath & Body Works's Cash Ratio
For the Specialty Retail subindustry, Bath & Body Works's Cash Ratio, along with its competitors' market caps and Cash 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's Cash Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Cash Ratio falls into.
Bath & Body Works Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Bath & Body Works's Cash Ratio 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.
Bath & Body Works (NYSE:BBWI) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Bath & Body Works Cash Ratio Related Terms
Thank you for viewing the detailed overview of Bath & Body Works's Cash Ratio 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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