Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Bed Bath & Beyond Inc., solvency ratios
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).
- Debt to equity
- The debt to equity ratio remained relatively stable between 0.52 and 0.58 from 2017 to 2019, indicating a moderate leverage position. However, starting in 2020, there was a significant increase to 0.9 and 0.93, followed by a dramatic spike to 6.99 in 2022. This indicates a substantial rise in debt relative to shareholders' equity over the recent years.
- Debt to equity (including operating lease liability)
- When including operating lease liabilities, the debt to equity ratio trends similarly but at higher levels. It was steady at around 0.52-0.58 through 2017-2019, surged to 2.2 in 2020, then increased to 2.4 in 2021, and sharply rose to 17.64 in 2022. This highlights that operating lease obligations have increasingly contributed to the company’s leverage.
- Debt to capital
- The debt to capital ratio showed a slight gradual increase from 0.34-0.37 during 2017-2019 to 0.47-0.48 in 2020-2021, with a notable rise to 0.87 in 2022. This reflects a growing proportion of debt in the company’s overall capital structure.
- Debt to capital (including operating lease liability)
- Including operating lease liabilities, the debt to capital ratio increased more substantially, moving from 0.34-0.37 in 2017-2019 to 0.69-0.71 in 2020-2021, and further to 0.95 in 2022. This suggests that operating lease commitments have escalated the company’s reliance on debt-like obligations as part of its capital base.
- Debt to assets
- The debt to assets ratio remained relatively stable from 2017 through 2019, fluctuating between 0.21 and 0.23. It then slightly declined to 0.18 in 2021 before rising again to 0.24 in 2022. This indicates a modest variation in debt relative to total assets, with a slight overall increase by the end of the period.
- Debt to assets (including operating lease liability)
- When including operating lease obligations, the debt to assets ratio saw a more pronounced increase from roughly 0.21-0.23 during 2017-2019 to 0.5 in 2020 and a slight decrease to 0.47 in 2021, ending at 0.6 in 2022. This underscores a significant rise in liabilities associated with operating leases relative to assets.
- Financial leverage
- Financial leverage was relatively stable between 2.44 and 2.57 from 2017 to 2019, then surged markedly to 4.41 in 2020 and further to 5.06 in 2021, before spiking to an extreme 29.46 in 2022. This sharp increase suggests a substantial amplification of the company’s debt usage relative to equity and assets.
- Interest coverage
- The interest coverage ratio exhibited a declining trend, starting strongly at 16.32 in 2017 and decreasing steadily to 11.59 in 2018. From 2019 onward, this metric turned negative, indicating the company’s operating earnings before interest and taxes were insufficient to cover interest expenses. The interest coverage deteriorated to -1.25 in 2019, -10.81 in 2020, -3.38 in 2021, and -6.31 in 2022, reflecting increasing difficulties in meeting interest obligations from operational earnings.
- Fixed charge coverage
- Fixed charge coverage declined from 2.64 in 2017 to 2.02 in 2018, showing decreasing ability to cover fixed charges with operating income. By 2019, the ratio dropped further to 0.76, turning negative (-0.18) in 2020, suggesting operational earnings insufficient to cover fixed charges. Some recovery was observed in 2021 with a positive ratio of 0.49, but this weakened again to 0.08 in 2022, indicative of persistent challenges in fixed charge coverage capability.
Debt Ratios
Coverage Ratios
Debt to Equity
Bed Bath & Beyond Inc., debt to equity calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Shareholders’ equity | 174,145) | 1,276,936) | 1,764,935) | 2,560,331) | 2,888,628) | 2,719,277) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 6.99 | 0.93 | 0.90 | 0.58 | 0.52 | 0.55 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | 0.59 | 0.54 | 0.66 | — | — | — | |
| Home Depot Inc. | — | 11.29 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 15.16 | 9.79 | — | — | — | |
| TJX Cos. Inc. | 0.56 | 1.04 | 0.38 | — | — | — | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.06 | 0.93 | 1.17 | — | — | — | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | 1.54 | 1.52 | 2.37 | — | — | — | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 1,217,717 ÷ 174,145 = 6.99
2 Click competitor name to see calculations.
- Total debt
- The total debt remained relatively stable from February 2017 through February 2020, fluctuating slightly around 1.49 to 1.59 billion US dollars. A notable decline occurred in February 2021, dropping to approximately 1.19 billion US dollars. This decline was followed by a slight increase in February 2022, reaching around 1.22 billion US dollars.
- Shareholders’ equity
- Shareholders’ equity exhibited a declining trend over the period analyzed. Starting from approximately 2.72 billion US dollars in February 2017, equity initially increased slightly to around 2.89 billion in March 2018. After this peak, a continuous and marked decrease occurred, reaching about 1.76 billion in February 2020 and diminishing further to approximately 1.28 billion in February 2021. By February 2022, equity had drastically reduced to a notably low level of around 174 million US dollars, indicative of a significant erosion of net assets over time.
- Debt to equity ratio
- The debt to equity ratio remained relatively moderate and stable from 2017 through 2019, ranging between 0.52 and 0.58. However, in 2020, a sharp increase to 0.9 was observed, followed by a small increase to 0.93 in 2021. The ratio surged dramatically in 2022, reaching an exceptionally high level of 6.99. This spike reflects the substantial decline in shareholders’ equity combined with relatively stable debt levels, indicating a significant increase in financial leverage and potential risk.
Debt to Equity (including Operating Lease Liability)
Bed Bath & Beyond Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Current operating lease liabilities | 346,506) | 360,061) | 463,005) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 1,508,002) | 1,509,767) | 1,818,783) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,072,225) | 3,060,191) | 3,874,141) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Shareholders’ equity | 174,145) | 1,276,936) | 1,764,935) | 2,560,331) | 2,888,628) | 2,719,277) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 17.64 | 2.40 | 2.20 | 0.58 | 0.52 | 0.55 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 1.06 | 0.96 | 1.08 | — | — | — | |
| Home Depot Inc. | — | 13.16 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 18.24 | 12.04 | — | — | — | |
| TJX Cos. Inc. | 2.08 | 2.66 | 1.93 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.67 | 1.46 | 1.76 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 1.94 | 1.90 | 2.84 | — | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 3,072,225 ÷ 174,145 = 17.64
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level remained relatively stable from 2017 to 2019, fluctuating slightly around 1.49 billion US dollars. However, a marked increase occurred in 2020, with total debt more than doubling to approximately 3.87 billion US dollars. This elevated debt level decreased somewhat in 2021 to about 3.06 billion US dollars and then remained steady in 2022 at roughly 3.07 billion US dollars.
- Shareholders’ Equity
- Shareholders' equity exhibited a declining trend throughout the period. Beginning at approximately 2.72 billion US dollars in 2017, it experienced a moderate rise in 2018 reaching near 2.89 billion US dollars, followed by a decline through 2019 and 2020 to 1.76 billion US dollars. The downward trend deepened sharply in 2021, with equity falling to about 1.28 billion US dollars and plummeting drastically in 2022 to a substantially low figure of 174 million US dollars.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio was fairly stable and low from 2017 to 2019, ranging between 0.52 and 0.58, indicating a balanced capital structure. From 2020 onward, the ratio surged significantly, reaching 2.2 in 2020 and 2.4 in 2021, reflecting increased leverage. By 2022, the ratio escalated dramatically to 17.64, signifying an extreme increase in debt relative to equity, which suggests heightened financial risk and potential solvency concerns.
Debt to Capital
Bed Bath & Beyond Inc., debt to capital calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Shareholders’ equity | 174,145) | 1,276,936) | 1,764,935) | 2,560,331) | 2,888,628) | 2,719,277) | |
| Total capital | 1,391,862) | 2,467,299) | 3,357,288) | 4,052,065) | 4,385,206) | 4,215,980) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.87 | 0.48 | 0.47 | 0.37 | 0.34 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | 0.37 | 0.35 | 0.40 | — | — | — | |
| Home Depot Inc. | 1.04 | 0.92 | 1.11 | — | — | — | |
| Lowe’s Cos. Inc. | 1.24 | 0.94 | 0.91 | — | — | — | |
| TJX Cos. Inc. | 0.36 | 0.51 | 0.27 | — | — | — | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.51 | 0.48 | 0.54 | — | — | — | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | 0.61 | 0.60 | 0.70 | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 1,217,717 ÷ 1,391,862 = 0.87
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable between 2017 and 2019, with a slight decrease from approximately 1.50 billion to 1.49 billion US dollars. A noticeable increase occurred in 2020, reaching about 1.59 billion US dollars. Subsequently, the total debt decreased to around 1.19 billion US dollars in 2021 but rose slightly again to approximately 1.22 billion US dollars in 2022.
- Total Capital
- Total capital exhibited a declining trend throughout the period. Starting from roughly 4.22 billion US dollars in 2017, it peaked slightly at over 4.38 billion US dollars in 2018. From 2019 onwards, a consistent decrease is observed, falling sharply to about 3.36 billion US dollars in 2020, further declining to approximately 2.47 billion in 2021, and reaching its lowest point at around 1.39 billion US dollars by 2022.
- Debt to Capital Ratio
- The debt to capital ratio showed relative stability from 2017 to 2019, fluctuating mildly between 0.34 and 0.37. However, this ratio increased significantly starting in 2020, rising to 0.47 and slightly up to 0.48 in 2021. The most marked increase occurred in 2022, where the ratio surged to 0.87, indicating a substantially higher proportion of debt in the company’s capital structure.
- Overall Analysis
- The data indicates an increasing reliance on debt financing relative to total capital over the analyzed years. While total debt remained mostly stable with minor fluctuations, the sharp decline in total capital greatly influenced the rise in the debt to capital ratio. This suggests a weakening equity base or declining total capital resources, which could raise concerns about financial leverage and potential solvency risks. The jump in the debt to capital ratio in 2022 is particularly noteworthy, highlighting a significant shift in capital structure towards higher leverage.
Debt to Capital (including Operating Lease Liability)
Bed Bath & Beyond Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Current operating lease liabilities | 346,506) | 360,061) | 463,005) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 1,508,002) | 1,509,767) | 1,818,783) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,072,225) | 3,060,191) | 3,874,141) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Shareholders’ equity | 174,145) | 1,276,936) | 1,764,935) | 2,560,331) | 2,888,628) | 2,719,277) | |
| Total capital (including operating lease liability) | 3,246,370) | 4,337,127) | 5,639,076) | 4,052,065) | 4,385,206) | 4,215,980) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.95 | 0.71 | 0.69 | 0.37 | 0.34 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.51 | 0.49 | 0.52 | — | — | — | |
| Home Depot Inc. | 1.04 | 0.93 | 1.09 | — | — | — | |
| Lowe’s Cos. Inc. | 1.20 | 0.95 | 0.92 | — | — | — | |
| TJX Cos. Inc. | 0.68 | 0.73 | 0.66 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.63 | 0.59 | 0.64 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.66 | 0.65 | 0.74 | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,072,225 ÷ 3,246,370 = 0.95
2 Click competitor name to see calculations.
The financial data indicates significant fluctuations in the company's debt and capital structure over the analyzed periods.
- Total Debt (including operating lease liability)
- The total debt remained relatively stable from February 2017 through March 2019, hovering around 1.49 million US dollars. However, there was a sharp increase in February 2020, where debt escalated to approximately 3.87 million US dollars. This figure then declined to around 3.06 million in February 2021 and slightly increased to about 3.07 million in February 2022.
- Total Capital (including operating lease liability)
- Total capital experienced a decline from around 4.22 million US dollars in February 2017 to approximately 4.05 million in March 2019. In February 2020, total capital surged to nearly 5.64 million US dollars, followed by a notable decrease to approximately 4.34 million in February 2021. This downward trend continued through February 2022, reaching approximately 3.25 million US dollars.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio demonstrated a relatively stable pattern around the mid-30% range from 2017 to 2019. A pronounced increase occurred in 2020, where the ratio nearly doubled to 0.69 and further increased slightly to 0.71 in 2021. By February 2022, the ratio escalated significantly to 0.95, indicating that debt comprised a much larger proportion of the capital structure compared to previous years.
Overall, the data reveals a marked increase in debt relative to capital starting in 2020, coinciding with a peak in total capital. The subsequent decline in total capital combined with sustained levels of high debt has led to an increasingly leveraged position by 2022, as reflected by the rising debt to capital ratio. These trends suggest a shift towards greater financial risk and leverage in recent years.
Debt to Assets
Bed Bath & Beyond Inc., debt to assets calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Total assets | 5,130,572) | 6,456,930) | 7,790,515) | 6,570,541) | 7,040,806) | 6,846,029) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.24 | 0.18 | 0.20 | 0.23 | 0.21 | 0.22 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | 0.19 | 0.18 | 0.19 | — | — | — | |
| Home Depot Inc. | 0.56 | 0.53 | 0.61 | — | — | — | |
| Lowe’s Cos. Inc. | 0.55 | 0.47 | 0.49 | — | — | — | |
| TJX Cos. Inc. | 0.12 | 0.20 | 0.09 | — | — | — | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.25 | 0.24 | 0.26 | — | — | — | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | 0.35 | 0.36 | 0.41 | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 1,217,717 ÷ 5,130,572 = 0.24
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable between fiscal years 2017 and 2019, fluctuating slightly around 1.49 million US dollars. In 2020, there was a noticeable increase to approximately 1.59 million US dollars. This was followed by a significant reduction in 2021 to about 1.19 million US dollars, and then a minor increase to roughly 1.22 million US dollars in 2022.
- Total Assets
- Total assets exhibited fluctuations over the examined period. From 2017 to 2018, assets increased moderately, reaching approximately 7.04 million US dollars. However, a decline was observed in 2019, dropping to around 6.57 million US dollars. There was a sharp rebound in 2020, with assets peaking near 7.79 million US dollars. Subsequently, a substantial decline occurred in 2021 and 2022, with assets decreasing to approximately 6.46 million and then 5.13 million US dollars, respectively.
- Debt to Assets Ratio
- The debt to assets ratio started at 0.22 in 2017 and showed a gradual decline over the next few years until 2021, reaching a low of 0.18. This suggests improved asset coverage or a reduction in leverage relative to assets during that interval. In 2022, however, the ratio increased sharply to 0.24, indicating a rise in leverage relative to the company's asset base.
Debt to Assets (including Operating Lease Liability)
Bed Bath & Beyond Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current finance lease liabilities | 2,494) | —) | 1,541) | —) | —) | —) | |
| Noncurrent finance lease liabilities | 35,447) | —) | 102,412) | 3,800) | 4,500) | 5,100) | |
| Long term debt | 1,179,776) | 1,190,363) | 1,488,400) | 1,487,934) | 1,492,078) | 1,491,603) | |
| Total debt | 1,217,717) | 1,190,363) | 1,592,353) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Current operating lease liabilities | 346,506) | 360,061) | 463,005) | —) | —) | —) | |
| Noncurrent operating lease liabilities | 1,508,002) | 1,509,767) | 1,818,783) | —) | —) | —) | |
| Total debt (including operating lease liability) | 3,072,225) | 3,060,191) | 3,874,141) | 1,491,734) | 1,496,578) | 1,496,703) | |
| Total assets | 5,130,572) | 6,456,930) | 7,790,515) | 6,570,541) | 7,040,806) | 6,846,029) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.60 | 0.47 | 0.50 | 0.23 | 0.21 | 0.22 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.33 | 0.31 | 0.31 | — | — | — | |
| Home Depot Inc. | 0.64 | 0.62 | 0.73 | — | — | — | |
| Lowe’s Cos. Inc. | 0.66 | 0.56 | 0.60 | — | — | — | |
| TJX Cos. Inc. | 0.44 | 0.50 | 0.47 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.40 | 0.38 | 0.40 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.44 | 0.45 | 0.50 | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,072,225 ÷ 5,130,572 = 0.60
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt remained relatively stable from 2017 to 2019, fluctuating slightly around 1.49 million US$ thousands. However, a significant increase occurred in 2020, with the total debt more than doubling to approximately 3.87 million US$ thousands. Following this peak, the debt level decreased somewhat in 2021 to about 3.06 million US$ thousands and remained stable into 2022 at approximately 3.07 million US$ thousands.
- Total Assets
- Total assets showed a generally fluctuating pattern over the years. An initial slight increase was observed from 6.85 million US$ thousands in 2017 to just over 7 million US$ thousands in 2018, followed by a decline in 2019 to approximately 6.57 million US$ thousands. In 2020, total assets peaked at around 7.79 million US$ thousands before sharply declining in 2021 to roughly 6.46 million US$ thousands. This downward trend continued into 2022 with total assets falling further to about 5.13 million US$ thousands.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio remained relatively low and stable from 2017 through 2019, ranging between 0.21 and 0.23. In 2020, there was a notable increase to 0.50, indicating a substantial rise in leverage relative to assets. This elevated ratio slightly decreased to 0.47 in 2021 but increased again in 2022 to 0.60, the highest ratio recorded in the period, indicating a significant reliance on debt financing compared to the asset base.
- Summary
- Overall, the data illustrates a period of increased financial leverage beginning in 2020, coinciding with a sharp rise in total debt and a peak followed by decline in total assets. The company's debt levels surged notably during this time, increasing its debt burden relative to assets from stable levels into a substantially more leveraged position by 2022. Concurrently, the reduction in asset base over the last two years suggests either asset disposals or write-downs, which, combined with elevated debt, may indicate financial strain or strategic restructuring efforts.
Financial Leverage
Bed Bath & Beyond Inc., financial leverage calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Total assets | 5,130,572) | 6,456,930) | 7,790,515) | 6,570,541) | 7,040,806) | 6,846,029) | |
| Shareholders’ equity | 174,145) | 1,276,936) | 1,764,935) | 2,560,331) | 2,888,628) | 2,719,277) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 29.46 | 5.06 | 4.41 | 2.57 | 2.44 | 2.52 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | 3.17 | 3.04 | 3.44 | — | — | — | |
| Home Depot Inc. | — | 21.39 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 32.52 | 20.02 | — | — | — | |
| TJX Cos. Inc. | 4.74 | 5.28 | 4.06 | — | — | — | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.18 | 3.82 | 4.44 | — | — | — | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | 4.38 | 4.26 | 5.72 | — | — | — | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 5,130,572 ÷ 174,145 = 29.46
2 Click competitor name to see calculations.
- Total Assets
- Total assets demonstrated variability over the analyzed periods. Beginning at approximately 6.85 billion US dollars in early 2017, the figure saw slight growth to 7.04 billion in early 2018, followed by a decline to around 6.57 billion in 2019. A significant increase was observed in early 2020, reaching about 7.79 billion, before a sharp decline in subsequent years to approximately 6.46 billion in 2021 and further down to roughly 5.13 billion in early 2022. The data indicates a general downward trend in total assets in the latter part of the period, with a peak occurring in early 2020.
- Shareholders’ Equity
- Shareholders' equity showed a consistent decrease throughout the periods. Starting at near 2.72 billion US dollars in early 2017, it slightly increased to nearly 2.89 billion in 2018 but then declined steadily to about 2.56 billion in 2019. The downward trend accelerated in 2020, with equity dropping to approximately 1.76 billion, then further declining to around 1.28 billion in 2021, and plummeting dramatically to 174 million in early 2022. This pattern reflects a substantial erosion of equity over time, especially pronounced in the final years surveyed.
- Financial Leverage
- Financial leverage ratios exhibited notable changes, starting at 2.52 in early 2017 and exhibiting minor fluctuations near this level through 2019. However, there was a marked increase to 4.41 in 2020 and further to 5.06 in 2021, indicating rising leverage levels. The most significant change occurred in early 2022, with the ratio reaching 29.46, suggesting a dramatic increase in the use of debt relative to equity. This sharp rise correlates with the steep decline in shareholders' equity over the same period, highlighting increased financial risk and potential solvency concerns.
Interest Coverage
Bed Bath & Beyond Inc., interest coverage calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net earnings (loss) | (559,623) | (150,773) | (613,816) | (137,224) | 424,858) | 685,108) | |
| Add: Income tax expense | 86,967) | (185,989) | (151,037) | (19,385) | 270,802) | 380,547) | |
| Add: Interest expense, net | 64,702) | 76,913) | 64,789) | 69,474) | 65,661) | 69,555) | |
| Earnings before interest and tax (EBIT) | (407,954) | (259,849) | (700,064) | (87,135) | 761,321) | 1,135,210) | |
| Solvency Ratio | |||||||
| Interest coverage1 | -6.31 | -3.38 | -10.81 | -1.25 | 11.59 | 16.32 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | -1.51 | 22.09 | 15.69 | — | — | — | |
| Home Depot Inc. | 17.14 | 13.60 | 13.25 | — | — | — | |
| Lowe’s Cos. Inc. | 13.49 | 9.88 | 8.83 | — | — | — | |
| TJX Cos. Inc. | 37.80 | 1.46 | 75.57 | — | — | — | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 7.64 | 15.91 | 14.50 | — | — | — | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | 9.45 | 13.29 | 7.81 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= -407,954 ÷ 64,702 = -6.31
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- EBIT presented a marked decline over the observed six-year period. Initially, there was a strong positive figure of approximately 1.14 billion US dollars in early 2017, which decreased significantly to about 761 million in 2018. Starting in 2019, EBIT turned negative and progressively worsened, reaching a low of approximately -700 million in 2020, before slightly improving but remaining negative in 2021 and 2022 with values around -260 million and -408 million respectively. This indicates a shift from profitability to sustained operating losses over the latter half of the timeline.
- Interest expense, net
- Net interest expense fluctuated moderately throughout the period but remained within a relatively narrow range between approximately 64 million and 77 million US dollars. The expense peaked in 2021 at around 77 million, with slight variations before and after this year, showing no clear long-term trend of increase or decrease.
- Interest coverage ratio
- The interest coverage ratio showed a significant deterioration. It began at a robust level of 16.32 in early 2017, indicating strong ability to cover interest expenses from operating earnings. However, this ratio declined steadily, turning negative in 2019 and worsening further through 2022, where it reached -6.31. The negative and decreasing values signify that EBIT was insufficient to cover interest expenses, reflecting increasing financial stress and potential liquidity concerns.
- Summary
- The overall financial condition as reflected in EBIT and interest coverage deteriorated substantially from 2017 through 2022. The transition from positive to negative EBIT and the concurrent fall of interest coverage into negative territory suggest weakening operational performance and increased challenges in servicing debt obligations. Interest expenses remained relatively stable, indicating that rising interest costs were not the primary driver of financial strain, rather the decline in EBIT was pivotal. These trends highlight a material downward shift in profitability and financial resilience over the analyzed timeframe.
Fixed Charge Coverage
Bed Bath & Beyond Inc., fixed charge coverage calculation, comparison to benchmarks
| Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | Mar 2, 2019 | Mar 3, 2018 | Feb 25, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net earnings (loss) | (559,623) | (150,773) | (613,816) | (137,224) | 424,858) | 685,108) | |
| Add: Income tax expense | 86,967) | (185,989) | (151,037) | (19,385) | 270,802) | 380,547) | |
| Add: Interest expense, net | 64,702) | 76,913) | 64,789) | 69,474) | 65,661) | 69,555) | |
| Earnings before interest and tax (EBIT) | (407,954) | (259,849) | (700,064) | (87,135) | 761,321) | 1,135,210) | |
| Add: Operating lease cost | 449,394) | 582,168) | 581,061) | 593,300) | 614,100) | 582,200) | |
| Earnings before fixed charges and tax | 41,440) | 322,319) | (119,003) | 506,165) | 1,375,421) | 1,717,410) | |
| Interest expense, net | 64,702) | 76,913) | 64,789) | 69,474) | 65,661) | 69,555) | |
| Operating lease cost | 449,394) | 582,168) | 581,061) | 593,300) | 614,100) | 582,200) | |
| Fixed charges | 514,096) | 659,081) | 645,850) | 662,774) | 679,761) | 651,755) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 0.08 | 0.49 | -0.18 | 0.76 | 2.02 | 2.64 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 0.47 | 5.24 | 4.63 | — | — | — | |
| Home Depot Inc. | 9.94 | 8.97 | 8.26 | — | — | — | |
| Lowe’s Cos. Inc. | 8.02 | 6.05 | 5.04 | — | — | — | |
| TJX Cos. Inc. | 3.17 | 1.04 | 3.43 | — | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 2.82 | 5.29 | 5.11 | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | 3.70 | 5.63 | 3.72 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 41,440 ÷ 514,096 = 0.08
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax display a declining trend from 2017 through 2020, starting at approximately 1.72 billion USD in early 2017 and dropping significantly to a negative figure of around 119 million USD by early 2020. This decline indicates deteriorating operational profitability over this period. There is a partial recovery observed in 2021 with positive earnings of approximately 322 million USD, but this improvement is temporary as the figure drops again in 2022 to about 41 million USD, signaling continued operational challenges.
- Fixed charges
- Fixed charges remain relatively stable from 2017 to 2021, fluctuating marginally between approximately 651 million USD and 659 million USD. However, a notable decrease occurs in 2022, where fixed charges decline to around 514 million USD. This reduction may reflect cost-cutting measures or restructuring efforts aiming to alleviate financial burdens.
- Fixed charge coverage ratio
- The fixed charge coverage ratio exhibits a marked downward trend from 2017 to 2020. Initially, the ratio is at a healthy level of 2.64 in 2017, indicating ample earnings to cover fixed charges. By 2019, the ratio falls below 1.0, reaching 0.76, suggesting earnings are insufficient to meet fixed charge obligations comfortably. In 2020, the ratio turns negative (-0.18), reflecting the negative earnings and inability to cover fixed charges. Although there is slight improvement in 2021 and 2022 with ratios of 0.49 and 0.08 respectively, these values remain well below 1.0, highlighting persistent difficulties in covering fixed financial obligations through operating earnings.