BBWI Debt-to-Equity Ratio Analysis

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder equity to fund its operations.

A negative ratio like BBWI's current -3.19x means the company has negative shareholders' equity — its liabilities exceed its assets — which is an unusual and typically precarious financial position. This ratio is far below the sector median of 0.47x, placing BBWI in the 3rd percentile among Consumer Cyclical peers, meaning only 3% of sector companies have a lower (more negative) ratio. The metric has been increasing over the last eight quarters, with a quarter-over-quarter rise of +23.3% (no year-over-year change is available). A negative and rising debt-to-equity ratio suggests deepening financial leverage and shrinking equity, which amplifies risk because any earnings shortfall could quickly impair the company's ability to service debt. This combination of an extreme negative level and an upward trend points to elevated bankruptcy or solvency risk, with no obvious opportunity for patient investors. Therefore, the negative ratio and its continued deterioration directly support the CAUTIOUS overall verdict.

Frequently Asked Questions

Closest Sector Peers