Debt-to-Equity Ratio

Bath & Body Works' debt-to-equity ratio of -3.19x means the company has negative shareholder equity — its total liabilities exceed its total assets, a situation often associated with high financial leverage or accumulated losses.

For context, the sector median for Consumer Cyclical companies is 0.77x, and BBWI sits at the 3rd percentile among peers, showing it carries a far more negative ratio than nearly all competitors. Over the last eight quarters the metric has been increasing (from -4.17x to -3.19x), with a quarter-over-quarter rise of +23.3% (year-over-year change is not available). A rising, less-negative debt-to-equity ratio indicates the equity position is improving relative to debt, yet the absolute level remains deeply negative, pointing to persistent financial risk that may limit the company's flexibility. This combination of a very weak level with an improving trend presents a mixed picture: the trend reduces some urgency, but the extreme percentile rank still signals elevated risk for investors. The metric contradicts the overall BULLISH verdict, as negative equity is a fundamental concern that typically weighs against a positive outlook.

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