Bath & Body Works

  • Bath & Body Works (BBWI): Surprisingly Strong ROIC & Stock Pitch (Sort Of)

    There are lots of things to dislike about retailers, and it’s especially easy to be dismissive of ones selling soap and candles in malls. But Bath & Body Works () capital productivity and track record of growth are probably stronger than you think. The business consistently generates excess returns on capital and has grown (organically)…

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  • ROIC Calculations Related To Operating Leases

    Quick Background On Lease Accounting Anyone who was a financial analyst before 2019 was likely trained to adjust some version of operating income, enterprise value, and leverage ratio calculations for leases. Why? Before that time, lease expenses related to operating leases were simply expensed in the income statement, and there was zero accounting for them…

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