The business behind the dividend
| Measure | BBWI | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 43.1% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $666.00m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $865.00m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 15.4% | 14.3% | Operating income ÷ revenue |
| Net margin | 8.9% | 10.1% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 4.08x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 1.27x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 8.44x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.70x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -8.9% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Debt to equity, Return on equity — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on capital employed | 43.1% | 50.7% | 46.5% | 51.8% | 60.2% | 28.1% | 25.7% | 25.0% | 34.3% | 40.0% | 40.0% |
| Operating margin | 15.4% | 17.3% | 17.3% | 18.2% | 25.5% | 24.9% | 19.2% | 9.3% | 13.7% | 15.9% | 17.3% |
| Net margin | 8.9% | 10.9% | 11.8% | 10.6% | 16.9% | 13.1% | -6.8% | 4.9% | 7.8% | 9.2% | 9.2% |
| Current ratio | 1.27x | 1.48x | 1.64x | 1.64x | 2.33x | 1.97x | 1.37x | 1.64x | 1.62x | 1.72x | 1.64x |
| Cash conversion | 1.70x | 1.11x | 1.09x | 1.43x | 1.12x | 2.42x | — | 2.14x | 1.43x | 1.72x | 1.43x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, Bath & Body Works pays out less than 126 of them. The median for that group is 33.1%, against this company’s 19.3%.
Closest on free cash flow
- Macy's (M) 18.6%
- J.Jill (JILL) 19.3%
- Omnicom Group (OMC) 19.7%
- Somnigroup International (SGI) 20.1%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →