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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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Bed Bath & Beyond Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Feb 26, 2022 Feb 27, 2021 Feb 29, 2020 Mar 2, 2019 Mar 3, 2018 Feb 25, 2017
Accounts payable 17.00 15.27 12.12 16.65 17.01 17.22
Accrued expenses and other current liabilities 10.27 9.85 8.65 9.49 8.99 7.07
Merchandise credit and gift card liabilities 6.36 4.84 4.37 5.16 4.76 4.52
Current operating lease liabilities 6.75 5.58 5.94 0.00 0.00 0.00
Current finance lease liabilities 0.05 0.00 0.02 0.00 0.00 0.00
Liabilities related to assets held-for-sale 0.00 0.00 0.55 0.00 0.00 0.00
Current income taxes payable 0.00 0.00 0.00 0.31 0.00 0.87
Current liabilities 40.44% 35.54% 31.66% 31.62% 30.76% 29.69%
Other liabilities 1.31 1.27 1.32 5.96 6.07 7.74
Noncurrent operating lease liabilities 29.39 23.38 23.35 0.00 0.00 0.00
Noncurrent finance lease liabilities 0.69 0.00 1.31 0.06 0.06 0.07
Income taxes payable 1.78 1.59 0.60 0.75 0.89 0.99
Long term debt 23.00 18.44 19.11 22.65 21.19 21.79
Noncurrent liabilities 56.17% 44.68% 45.68% 29.41% 28.21% 30.59%
Total liabilities 96.61% 80.22% 77.35% 61.03% 58.97% 60.28%
Preferred stock, $0.01 par value; no shares issued or outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 0.07 0.05 0.04 0.05 0.05 0.05
Additional paid-in capital 43.58 33.33 27.82 32.25 29.23 28.85
Retained earnings 188.40 158.36 133.17 169.13 161.11 160.73
Treasury stock, at cost -227.76 -171.11 -137.55 -161.57 -148.68 -149.22
Accumulated other comprehensive loss -0.90 -0.86 -0.83 -0.89 -0.69 -0.69
Shareholders’ equity 3.39% 19.78% 22.65% 38.97% 41.03% 39.72%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The financial structure of the entity underwent a significant transformation between February 2017 and February 2022, characterized by a systematic shift from equity-based funding to a heavy reliance on liabilities. Total liabilities as a percentage of total liabilities and shareholders’ equity increased from 60.28% in 2017 to 96.61% by 2022, indicating a severe deterioration in the solvency profile and a heightened risk of financial instability.

Liability Composition and Trends
A substantial increase in noncurrent liabilities is observed, rising from 30.59% in 2017 to 56.17% in 2022. This trend was primarily driven by the introduction of operating lease liabilities in 2020, which accounted for approximately 29.29% of the total balance sheet (combining current and noncurrent portions) in that year, and grew to 36.14% by 2022. Long-term debt also remained a significant component, ending the period at 23.00%.
Current liabilities exhibited a steady upward trajectory, growing from 29.69% in 2017 to 40.44% in 2022. While accounts payable remained relatively stable, fluctuating around 17%, there was a noticeable increase in accrued expenses and other current liabilities, which rose from 7.07% to 10.27% over the analyzed period.
Equity Erosion and Capital Structure
Shareholders’ equity experienced a precipitous decline, falling from 39.72% in 2017 to a marginal 3.39% in 2022. This erosion indicates that the company's assets became almost entirely funded by creditors by the end of the period.
The equity components reveal a complex internal dynamic. Retained earnings remained positive and grew to 188.40% by 2022; however, this was offset by an aggressive increase in treasury stock at cost, which reached -227.76% in 2022. This pattern suggests extensive share repurchase activity that significantly reduced the overall equity base.
Additional paid-in capital showed a marked increase in the final year, rising to 43.58%, which suggests a late-stage infusion of capital or adjustments to the equity structure amid the broader decline in total shareholders' equity.

Overall, the data reflects a transition toward an extremely leveraged capital structure. The combination of increasing lease and debt obligations alongside the depletion of shareholders' equity suggests a narrowing margin of safety and an increased dependency on external financing to maintain operations.

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