Dave & Buster’s Entertainment (PLAY)
Activity ratios
Short-term
Turnover ratios
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.06 | 6.80 | 5.08 | 3.15 | 6.77 |
| Receivables turnover | 90.24 | 73.47 | 19.15 | 6.23 | 581.16 |
| Payables turnover | 2.84 | 3.65 | 3.28 | 2.06 | 3.57 |
| Working capital turnover | — | — | — | — | — |
1. Inventory turnover: Dave & Buster’s inventory turnover has been progressively increasing over the past five years. This indicates that the company is managing its inventory more efficiently, turning over its inventory nearly 9 times in 2024 compared to only 3 times in 2021. This suggests improved inventory management and sales performance.
2. Receivables turnover: The receivables turnover ratio for Dave & Buster’s shows a fluctuating trend over the last five years. The ratio has generally been high, indicating that the company is collecting its receivables quickly. However, there was a significant decrease in 2021 followed by a substantial increase in 2022. This could be due to changes in credit policies or collection efficiency.
3. Payables turnover: Dave & Buster’s payables turnover ratio has been relatively stable over the past five years. The ratio indicates how quickly the company is paying its suppliers. A decreasing trend in payables turnover ratio may suggest that the company is taking longer to pay its bills, which can impact relationships with suppliers.
4. Working capital turnover: The data for the working capital turnover ratio is not provided. This ratio measures how effectively a company is utilizing its working capital to generate sales revenue. Without this data, it is challenging to assess the efficiency of Dave & Buster’s in utilizing its working capital.
Overall, analyzing Dave & Buster’s activity ratios provides insights into the company's operational efficiency, inventory management, credit policies, and supplier relationships over the years.
Average number of days
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.29 | 53.65 | 71.80 | 116.01 | 53.94 |
| Days of sales outstanding (DSO) | days | 4.04 | 4.97 | 19.06 | 58.59 | 0.63 |
| Number of days of payables | days | 128.45 | 100.08 | 111.28 | 177.37 | 102.25 |
The Days of Inventory on Hand (DOH) for Dave & Buster’s Entertainment have shown a fluctuating trend over the past five fiscal years. There was a significant decrease in the DOH from 2019 to 2020, followed by an increase in 2021, and a subsequent decrease in 2022 and 2023. The decrease in DOH indicates that the company is managing its inventory more efficiently in recent years.
The Days of Sales Outstanding (DSO) for Dave & Buster’s have exhibited a downward trend from 2020 to 2023, indicating an improvement in the collection of receivables. However, there was a spike in 2022, which may suggest a delay in collecting payments from customers during that period.
The Number of Days of Payables for Dave & Buster’s has also shown variability over the past five years. There was an increase in the number of days of payables in 2021, a decrease in 2022, and an increase again in 2023. This fluctuation suggests changes in the company's payment terms with its suppliers.
Overall, the activity ratios reflect improvements in inventory management and receivables collection for Dave & Buster’s Entertainment in recent years. However, the fluctuating trend in payables may warrant further analysis to assess the company's payment practices and relationships with suppliers.
Long-term
| Feb 4, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.55 | 1.59 | 1.60 | 0.54 | 1.50 |
| Total asset turnover | 0.55 | 0.50 | 0.53 | 0.19 | 0.57 |
The long-term activity ratios of Dave & Buster’s Entertainment show fluctuations over the past five fiscal years. The trend in fixed asset turnover indicates that the company's ability to generate sales from its fixed assets has remained relatively stable, with a slight decline over the period but still maintaining a relatively healthy level, ranging from 0.54 to 1.60. This suggests that the company is efficiently utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has shown more significant fluctuations over the years, ranging from 0.19 to 0.57. This ratio measures the company's ability to generate sales from all its assets, including both fixed and current assets. The increase from 0.19 in 2021 to 0.55 in 2024 indicates an improvement in the company's overall asset utilization efficiency.
Overall, while there have been fluctuations in Dave & Buster’s long-term activity ratios, the trend suggests that the company has been effectively managing and utilizing its assets to generate revenue.Continuous monitoring of these ratios will be important to assess the company's operational efficiency and asset management strategies going forward.