Bed Bath & Beyond Inc. (NASDAQ:BBBY)

The financial ratios indicate varying trends in asset utilization and equity efficiency over the analyzed periods.

Net Fixed Asset Turnover

This ratio showed moderate stability from 2017 through 2019, fluctuating narrowly between 6.47 and 6.65. A notable increase occurred in 2020, reaching 7.8, followed by a peak in 2021 at 10.05, before declining to 7.66 in 2022. This suggests an improvement in how effectively fixed assets were used to generate sales up to 2021, with some reduction in efficiency by the last year of measurement.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

In contrast, when incorporating operating leases and right-of-use assets, the ratio declined significantly starting in 2020, dropping from 6.49 to 3.25, then modestly increasing to 3.69 in 2021 before decreasing again to 3.04 in 2022. This pattern implies that recognizing leases as assets affected the apparent efficiency of fixed assets and may reflect changes in accounting standards or lease capitalization impacting asset base evaluations.

Total Asset Turnover

The total asset turnover ratio remained relatively stable between 1.75 and 1.83 from 2017 to 2019, then dropped notably to 1.43 in 2020 and held steady through 2021, with a slight rebound to 1.53 in 2022. The decline suggests a reduction in asset efficiency at generating sales amid the calendar period around 2020, potentially reflecting operational or market challenges, with a gradual recovery thereafter.

Equity Turnover

Equity turnover was relatively stable from 2017 to 2019, fluctuating around 4.3 to 4.7. A marked increase was observed in 2020 and 2021, reaching 6.32 and 7.23 respectively. In 2022, this ratio soared dramatically to 45.18. Such a sharp rise in equity turnover could imply a significant decrease in equity base or a substantial increase in sales relative to equity, warranting further investigation into the company's equity structure and capital changes during this period.

Net Sales

Net sales demonstrate a declining trend over the six-year period. Starting from approximately 12.2 billion USD in February 2017, sales remained relatively stable through early 2018, with a slight decrease by March 2019. Following that, a notable downward trajectory is observed, culminating at about 7.87 billion USD by February 2022. This represents a sustained decrease of approximately 35% from the initial value, indicating potential challenges in revenue generation or market demand.

Property and Equipment, Net

The net value of property and equipment decreased substantially over the reviewed period. From around 1.84 billion USD in early 2017, the figure peaked slightly in 2018 before descending sharply in subsequent years. The lowest recorded value was approximately 918 million USD in February 2021, followed by a modest recovery to nearly 1.03 billion USD in February 2022. This pattern may reflect asset disposals, impairments, or a reduction in capital expenditures.

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a generally increasing trend until February 2021, rising from 6.65 in 2017 to a peak of 10.05 in 2021. This indicates that the company improved its efficiency in utilizing fixed assets to generate sales during this span. However, the ratio then drops to 7.66 in 2022, suggesting a decline in asset utilization efficiency in the most recent year examined. The earlier improvement could be linked to asset reductions outpacing sales declines, while the later decrease may signify difficulties in maintaining operational efficiency.

Over the analyzed periods, net sales exhibited a consistent downward trend. Starting from approximately 12.2 billion US dollars in February 2017, sales experienced slight fluctuations but generally declined each year, reaching about 7.9 billion US dollars by February 2022. This reflects a significant contraction in revenue over the five-year span.

Regarding property and equipment, net values initially showed a moderate increase from roughly 1.8 billion US dollars in 2017 to about 1.9 billion in 2018, followed by a slight decrease in 2019. A substantial increase occurred in 2020, where the net value nearly doubled to approximately 3.4 billion US dollars. Subsequently, this value decreased to around 2.5 billion in 2021 and then showed a modest rise to approximately 2.6 billion in 2022. The surge in 2020 may suggest acquisition of significant assets or capitalization of operating leases leading to recognition of right-of-use assets during this period.

The net fixed asset turnover ratio, which measures efficiency in utilizing fixed assets to generate sales, correspondingly declined sharply over the same timeframe. Beginning at around 6.65 in 2017, the ratio remained relatively steady until 2019. However, from 2020 onward, it halved to approximately 3.25 and fluctuated slightly thereafter, declining again to 3.04 by 2022. This decrease indicates a reduced efficiency in asset utilization, likely reflecting the combination of increased asset base and declining sales.

In summary, the data shows a marked reduction in sales alongside significant changes in asset levels, particularly a notable increase in property and equipment values in 2020. The decreased net fixed asset turnover ratio highlights challenges in asset efficiency during this period.

Net Sales

Net sales exhibited a general declining trend over the period analyzed. Starting at approximately 12.22 billion USD in early 2017, net sales remained relatively stable through 2018 and 2019, with minor fluctuations. However, a notable decrease occurred in 2020, dropping to about 11.16 billion USD, followed by sharper declines in subsequent years, reaching approximately 7.87 billion USD by early 2022. This trend indicates a significant contraction in revenue over the six-year span.

Total Assets

Total assets showed variability but an overall downward trajectory. Beginning with about 6.85 billion USD in 2017, assets increased slightly in 2018 before decreasing in 2019. A pronounced rise was observed in 2020, peaking at roughly 7.79 billion USD. Subsequently, total assets declined considerably in 2021 and 2022, falling to approximately 5.13 billion USD. The fluctuation suggests periods of asset acquisition followed by divestitures or devaluations.

Total Asset Turnover Ratio

The total asset turnover ratio demonstrated some volatility but trended downward until 2020, dropping from 1.78 in 2017 to 1.43 in 2020 and 2021. This decline suggests reduced efficiency in generating sales from assets. A modest recovery occurred in 2022 with the ratio increasing to 1.53, indicating a slight improvement in asset utilization despite the declining net sales and total asset base.

Net Sales

The net sales experienced a declining trend over the analyzed periods. Starting from approximately 12.2 billion US dollars in early 2017, sales slightly increased in 2018 but then steadily decreased each subsequent year. By early 2022, net sales had declined to roughly 7.9 billion US dollars, representing a significant decrease compared to the initial period.

Shareholders’ Equity

Shareholders’ equity demonstrated a general downward trend over the examined timeframe. Starting at about 2.7 billion US dollars in early 2017, it showed some fluctuations but overall decreased notably each year. This downward trajectory culminated in early 2022 with shareholders’ equity dropping to approximately 174 million US dollars, indicating a substantial erosion of equity value.

Equity Turnover

The equity turnover ratio fluctuated throughout the periods, displaying an overall increasing trend. Initially positioned at 4.49 in early 2017, the ratio saw minor declines and rises but significantly increased from 2020 onward. By early 2022, the ratio surged dramatically to 45.18, suggesting a sharp rise in sales relative to shareholders’ equity. This sharp increase likely reflects the substantial decline in equity rather than a proportionate increase in sales, indicating potential financial stress or changes in capital structure.