Stock Analysis on Net

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

This company has been moved to the archive! The financial data has not been updated since September 30, 2022.

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Bed Bath & Beyond Inc., balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Operating Assets
Total assets 5,130,572 6,456,930 7,790,515 6,570,541 7,040,806 6,846,029
Less: Cash and cash equivalents 439,496 1,352,984 1,000,340 508,971 346,140 488,329
Less: Short term investment securities 385,642 485,799 378,039
Operating assets 4,691,076 5,103,946 6,404,533 5,575,771 6,316,627 6,357,700
Operating Liabilities
Total liabilities 4,956,427 5,179,994 6,025,580 4,010,210 4,152,178 4,126,752
Less: Current finance lease liabilities 2,494 1,541
Less: Noncurrent finance lease liabilities 35,447 102,412 3,800 4,500 5,100
Less: Long term debt 1,179,776 1,190,363 1,488,400 1,487,934 1,492,078 1,491,603
Operating liabilities 3,738,710 3,989,631 4,433,227 2,518,476 2,655,600 2,630,049
 
Net operating assets1 952,366 1,114,315 1,971,306 3,057,295 3,661,027 3,727,651
Balance-sheet-based aggregate accruals2 (161,949) (856,991) (1,085,989) (603,732) (66,624)
Financial Ratio
Balance-sheet-based accruals ratio3 -15.67% -55.55% -43.19% -17.97% -1.80%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Amazon.com Inc. 32.91% 49.06% 18.08%
Home Depot Inc. 9.91% 21.77% 2.66%
Lowe’s Cos. Inc. 2.66% -12.39% 6.39%
TJX Cos. Inc. 73.65% -109.84% 15.53%
Balance-Sheet-Based Accruals Ratio, Sector
Consumer Discretionary Distribution & Retail 26.47% 31.88% 12.49% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Discretionary 12.34% 15.91% 5.08% 200.00%

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= 4,691,0763,738,710 = 952,366

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 952,3661,114,315 = -161,949

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -161,949 ÷ [(952,366 + 1,114,315) ÷ 2] = -15.67%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Bed Bath & Beyond Inc. improved earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Bed Bath & Beyond Inc., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Net earnings (loss) (559,623) (150,773) (613,816) (137,224) 424,858 685,108
Less: Net cash provided by operating activities 17,854 268,108 590,941 918,278 859,689 1,041,788
Less: Net cash (used in) provided by investing activities (349,182) 737,880 91,376 (509,682) (674,412) (491,929)
Cash-flow-statement-based aggregate accruals (228,295) (1,156,761) (1,296,133) (545,820) 239,581 135,249
Financial Ratio
Cash-flow-statement-based accruals ratio1 -22.09% -74.98% -51.55% -16.25% 6.49%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Amazon.com Inc. -8.54% 48.44% 23.04%
Home Depot Inc. 8.24% 14.26% 0.66%
Lowe’s Cos. Inc. -0.14% -17.28% 6.85%
TJX Cos. Inc. 55.57% -121.39% 14.48%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Consumer Discretionary Distribution & Retail -4.02% 29.06% 14.86% -9.94%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Discretionary 1.96% 12.28% 3.83% -8.48%

Based on: 10-K (reporting date: 2022-02-26), 10-K (reporting date: 2021-02-27), 10-K (reporting date: 2020-02-29), 10-K (reporting date: 2019-03-02), 10-K (reporting date: 2018-03-03), 10-K (reporting date: 2017-02-25).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -228,295 ÷ [(952,366 + 1,114,315) ÷ 2] = -22.09%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Bed Bath & Beyond Inc. improved earnings quality from 2021 to 2022.