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.

Analysis of Operating Leases

Microsoft Excel

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Bed Bath & Beyond Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Total undiscounted future operating lease payments 2,771,196 3,041,505 3,326,519
Discount rate1 5.68% 5.34% 5.76%
 
Total present value of future operating lease payments 2,298,308 2,531,568 2,702,735

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 Weighted-average discount rate, finance leases

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 5.68%
2020 609,613 2020 609,613 576,848
2021 534,055 2021 534,055 478,190
2022 434,908 2022 434,908 368,484
2023 334,587 2023 334,587 268,249
2024 241,863 2024 241,863 183,487
2025 and thereafter 616,170 2025 241,863 173,625
2026 241,863 164,293
2027 132,444 85,131
Total: 2,771,196 2,771,196 2,298,308

Based on: 10-K (reporting date: 2019-03-02).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 5.34%
2019 612,097 2019 612,097 581,068
2020 558,365 2020 558,365 503,189
2021 477,228 2021 477,228 408,269
2022 379,050 2022 379,050 307,839
2023 282,746 2023 282,746 217,987
2024 and thereafter 732,019 2024 282,746 206,936
2025 282,746 196,446
2026 166,527 109,834
Total: 3,041,505 3,041,505 2,531,568

Based on: 10-K (reporting date: 2018-03-03).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 5.76%
2018 614,148 2018 614,148 580,700
2019 563,682 2019 563,682 503,954
2020 502,371 2020 502,371 424,678
2021 419,526 2021 419,526 335,331
2022 323,809 2022 323,809 244,727
2023 and thereafter 902,983 2023 323,809 231,398
2024 323,809 218,796
2025 255,365 163,151
Total: 3,326,519 3,326,519 2,702,735

Based on: 10-K (reporting date: 2017-02-25).


Adjustments to Financial Statements for Operating Leases

Bed Bath & Beyond Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 2,298,308 2,531,568 2,702,735
Total assets (adjusted) 5,130,572 6,456,930 7,790,515 8,868,849 9,572,374 9,548,764
Adjustment to Total Debt
Total debt (as reported) 1,217,717 1,190,363 1,592,353 1,491,734 1,496,578 1,496,703
Add: Operating lease liability (before adoption of FASB Topic 842)2 2,298,308 2,531,568 2,702,735
Add: Current operating lease liabilities 346,506 360,061 463,005
Add: Noncurrent operating lease liabilities 1,508,002 1,509,767 1,818,783
Total debt (adjusted) 3,072,225 3,060,191 3,874,141 3,790,042 4,028,146 4,199,438

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, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Bed Bath & Beyond Inc., adjusted financial ratios

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Total Asset Turnover1
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 1.36 1.29 1.28
Debt to Equity2
Reported debt to equity 6.99 0.93 0.90 0.58 0.52 0.55
Adjusted debt to equity 17.64 2.40 2.20 1.48 1.39 1.54
Return on Assets3 (ROA)
Reported ROA -10.91% -2.34% -7.88% -2.09% 6.03% 10.01%
Adjusted ROA -10.91% -2.34% -7.88% -1.55% 4.44% 7.17%

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 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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Bed Bath & Beyond Inc. adjusted debt to equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as 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


Adjusted Total Asset Turnover

Microsoft Excel
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 Operating Leases
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 8,868,849 9,572,374 9,548,764
Activity Ratio
Adjusted total asset turnover2 1.53 1.43 1.43 1.36 1.29 1.28

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

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.

Adjusted Debt to Equity

Microsoft Excel
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 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
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 3,072,225 3,060,191 3,874,141 3,790,042 4,028,146 4,199,438
Shareholders’ equity 174,145 1,276,936 1,764,935 2,560,331 2,888,628 2,719,277
Solvency Ratio
Adjusted debt to equity2 17.64 2.40 2.20 1.48 1.39 1.54

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 Debt to equity = Total debt ÷ Shareholders’ equity
= 1,217,717 ÷ 174,145 = 6.99

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 3,072,225 ÷ 174,145 = 17.64

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Bed Bath & Beyond Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
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 Operating Leases
Selected Financial Data (US$ in thousands)
Net earnings (loss) (559,623) (150,773) (613,816) (137,224) 424,858 685,108
Adjusted total assets 5,130,572 6,456,930 7,790,515 8,868,849 9,572,374 9,548,764
Profitability Ratio
Adjusted ROA2 -10.91% -2.34% -7.88% -1.55% 4.44% 7.17%

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

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as 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.