Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Bed Bath & Beyond Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Goodwill	—)	—)	—)	391,052)	716,283)	697,085)
Indefinite lived tradenames and trademarks	16,300)	22,000)	91,200)	143,800)	305,400)	305,300)
Goodwill and other indefinite lived intangible assets	16,300)	22,000)	91,200)	534,852)	1,021,683)	1,002,385)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Indefinite lived tradenames and trademarks	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Bed Bath & Beyond Inc. indefinite lived tradenames and trademarks decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other indefinite lived intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Bed Bath & Beyond Inc. goodwill and other indefinite lived intangible assets decreased from 2020 to 2021 and from 2021 to 2022.

Bed Bath & Beyond Inc., adjustments to financial statements

US$ in thousands

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Adjustment to Total Assets
Total assets (as reported)	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Less: Goodwill	—)	—)	—)	391,052)	716,283)	697,085)
Total assets (adjusted)	5,130,572)	6,456,930)	7,790,515)	6,179,489)	6,324,523)	6,148,944)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	174,145)	1,276,936)	1,764,935)	2,560,331)	2,888,628)	2,719,277)
Less: Goodwill	—)	—)	—)	391,052)	716,283)	697,085)
Shareholders’ equity (adjusted)	174,145)	1,276,936)	1,764,935)	2,169,279)	2,172,345)	2,022,192)
Adjustment to Net Earnings (loss)
Net earnings (loss) (as reported)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Add: Goodwill impairment charges	—)	—)	391,100)	325,200)	—)	—)
Net earnings (loss) (adjusted)	(559,623)	(150,773)	(222,716)	187,976)	424,858)	685,108)

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).

Bed Bath & Beyond Inc., Financial Data: Reported vs. Adjusted

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Bed Bath & Beyond Inc., adjusted financial ratios

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
Net Profit Margin
Reported net profit margin	-7.11%	-1.63%	-5.50%	-1.14%	3.44%	5.61%
Adjusted net profit margin	-7.11%	-1.63%	-2.00%	1.56%	3.44%	5.61%
Total Asset Turnover
Reported total asset turnover	1.53	1.43	1.43	1.83	1.75	1.78
Adjusted total asset turnover	1.53	1.43	1.43	1.95	1.95	1.99
Financial Leverage
Reported financial leverage	29.46	5.06	4.41	2.57	2.44	2.52
Adjusted financial leverage	29.46	5.06	4.41	2.85	2.91	3.04
Return on Equity (ROE)
Reported ROE	-321.35%	-11.81%	-34.78%	-5.36%	14.71%	25.19%
Adjusted ROE	-321.35%	-11.81%	-12.62%	8.67%	19.56%	33.88%
Return on Assets (ROA)
Reported ROA	-10.91%	-2.34%	-7.88%	-2.09%	6.03%	10.01%
Adjusted ROA	-10.91%	-2.34%	-2.86%	3.04%	6.72%	11.14%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Bed Bath & Beyond Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Bed Bath & Beyond Inc. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Bed Bath & Beyond Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Bed Bath & Beyond Inc., Financial Ratios: Reported vs. Adjusted

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	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Profitability Ratio
Net profit margin¹	-7.11%	-1.63%	-5.50%	-1.14%	3.44%	5.61%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss)	(559,623)	(150,773)	(222,716)	187,976)	424,858)	685,108)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Profitability Ratio
Adjusted net profit margin²	-7.11%	-1.63%	-2.00%	1.56%	3.44%	5.61%

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).

2022 Calculations

¹ Net profit margin = 100 × Net earnings (loss) ÷ Net sales
= 100 × -559,623 ÷ 7,867,778 = -7.11%

² Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Net sales
= 100 × -559,623 ÷ 7,867,778 = -7.11%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Bed Bath & Beyond Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Total assets	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Activity Ratio
Total asset turnover¹	1.53	1.43	1.43	1.83	1.75	1.78
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	7,867,778)	9,233,028)	11,158,580)	12,028,797)	12,349,301)	12,215,757)
Adjusted total assets	5,130,572)	6,456,930)	7,790,515)	6,179,489)	6,324,523)	6,148,944)
Activity Ratio
Adjusted total asset turnover²	1.53	1.43	1.43	1.95	1.95	1.99

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).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 7,867,778 ÷ 5,130,572 = 1.53

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 7,867,778 ÷ 5,130,572 = 1.53

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
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
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	5,130,572)	6,456,930)	7,790,515)	6,179,489)	6,324,523)	6,148,944)
Adjusted shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,169,279)	2,172,345)	2,022,192)
Solvency Ratio
Adjusted financial leverage²	29.46	5.06	4.41	2.85	2.91	3.04

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 5,130,572 ÷ 174,145 = 29.46

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 5,130,572 ÷ 174,145 = 29.46

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Bed Bath & Beyond Inc. adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,560,331)	2,888,628)	2,719,277)
Profitability Ratio
ROE¹	-321.35%	-11.81%	-34.78%	-5.36%	14.71%	25.19%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss)	(559,623)	(150,773)	(222,716)	187,976)	424,858)	685,108)
Adjusted shareholders’ equity	174,145)	1,276,936)	1,764,935)	2,169,279)	2,172,345)	2,022,192)
Profitability Ratio
Adjusted ROE²	-321.35%	-11.81%	-12.62%	8.67%	19.56%	33.88%

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).

2022 Calculations

¹ ROE = 100 × Net earnings (loss) ÷ Shareholders’ equity
= 100 × -559,623 ÷ 174,145 = -321.35%

² Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted shareholders’ equity
= 100 × -559,623 ÷ 174,145 = -321.35%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Bed Bath & Beyond Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Feb 26, 2022	Feb 27, 2021	Feb 29, 2020	Mar 2, 2019	Mar 3, 2018	Feb 25, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss)	(559,623)	(150,773)	(613,816)	(137,224)	424,858)	685,108)
Total assets	5,130,572)	6,456,930)	7,790,515)	6,570,541)	7,040,806)	6,846,029)
Profitability Ratio
ROA¹	-10.91%	-2.34%	-7.88%	-2.09%	6.03%	10.01%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss)	(559,623)	(150,773)	(222,716)	187,976)	424,858)	685,108)
Adjusted total assets	5,130,572)	6,456,930)	7,790,515)	6,179,489)	6,324,523)	6,148,944)
Profitability Ratio
Adjusted ROA²	-10.91%	-2.34%	-2.86%	3.04%	6.72%	11.14%

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).

2022 Calculations

¹ ROA = 100 × Net earnings (loss) ÷ Total assets
= 100 × -559,623 ÷ 5,130,572 = -10.91%

² Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × -559,623 ÷ 5,130,572 = -10.91%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Bed Bath & Beyond Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Bed Bath & Beyond Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Bed Bath & Beyond Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)