Dave & Buster’s Entertainment (PLAY)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Dave & Buster’s Entertainment:

1. Inventory Turnover:
- As of January 29, 2023, and January 31, 2023, the inventory turnover ratio was consistent at 6.80.
- There was a significant increase in the inventory turnover ratio to 39.82 as of January 31, 2024, followed by a decrease to 9.06 by February 4, 2024, and further to 7.90 by January 31, 2025.
- The fluctuations in the inventory turnover ratio indicate changes in the efficiency of managing inventory levels and sales over the years.

2. Receivables Turnover:
- The receivables turnover ratio was 73.47 as of January 29, 2023, indicating that, on average, receivables were collected approximately 73 times during that period.
- The ratio was not available for January 31, 2023 and January 31, 2024 but increased to 90.24 by February 4, 2024.
- The lack of data for some periods may suggest varying collection efficiency or different reporting practices.

3. Payables Turnover:
- The payables turnover ratio was 3.65 as of January 29, 2023, indicating that payables were paid approximately 3.65 times during that period.
- The ratio was not available for January 31, 2023 and January 31, 2024 but decreased to 2.84 by February 4, 2024.
- Fluctuations in the payables turnover ratio can reflect changes in the company's payment terms with suppliers.

4. Working Capital Turnover:
- No data was available for the working capital turnover ratio for any of the specified periods.
- The lack of information on this ratio makes it challenging to assess how effectively the company is utilizing its working capital to generate revenue.

In summary, analyzing these activity ratios provides insights into Dave & Buster’s Entertainment's efficiency in managing inventory, collecting receivables, and paying payables. The variations in these ratios over time suggest fluctuations in operational efficiency and financial management practices.

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Average number of days

The activity ratios of Dave & Buster’s Entertainment provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- In January 2023, the company held inventory for an average of 53.67 days.
- By January 2024, the days of inventory on hand decreased significantly to 9.17 days, indicating a more efficient management of inventory levels.
- However, in February 2024, the DOH increased to 40.29 days, suggesting potential challenges in managing inventory during that period.
- As of January 31, 2025, the DOH stood at 46.21 days, indicating a slight increase in inventory holding period compared to the previous year.

2. Days of Sales Outstanding (DSO):
- In January 2023, the days of sales outstanding were at 4.97 days, indicating a quick conversion of sales into cash.
- Data for January 31, 2024, and January 31, 2025, are unavailable, but in February 2024, the DSO stood at 4.04 days, suggesting continued efficiency in collecting receivables.

3. Number of Days of Payables:
- As of January 29, 2023, the company took an average of 100.08 days to pay its suppliers, indicating a relatively long payment period.
- Information for January 31, 2023, and subsequent years is not provided, but by February 4, 2024, the number of days of payables increased to 128.45 days, indicating a potential extension in payment terms.
- The trend in payables should be monitored in subsequent periods to assess the impact on the company's working capital management.

Overall, Dave & Buster’s Entertainment has shown fluctuations in its activity ratios, with improvements in inventory management efficiency but potential challenges in extending payables. Continued monitoring of these ratios is essential to evaluate the company's operational performance and liquidity position.

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Long-term

The fixed asset turnover ratio measures the efficiency with which a company generates revenue from its fixed assets. In the case of Dave & Buster’s Entertainment, the fixed asset turnover ratio has shown some fluctuations over the years. It was 1.59 on January 29, 2023, improved to 1.66 by January 31, 2023, and then was not reported for January 31, 2024. However, on February 4, 2024, the ratio decreased to 1.55. This ratio indicates that the company is generating less revenue from its fixed assets in 2024 compared to the previous year, which could potentially be a cause for concern.

The total asset turnover ratio, on the other hand, measures how efficiently a company utilizes its total assets to generate revenue. For Dave & Buster’s Entertainment, the total asset turnover ratio has been relatively stable over the years. It stood at 0.50 on January 29, 2023, increased slightly to 0.52 by January 31, 2023, further improved to 0.59 on January 31, 2024, but then decreased to 0.55 on February 4, 2024, and remained at 0.53 on January 31, 2025. This ratio suggests that the company's ability to generate revenue from its total assets has been consistent, with a slight decline observed in 2024.

Overall, while the total asset turnover ratio indicates consistent performance in utilizing total assets to generate revenue, the fluctuating trend in the fixed asset turnover ratio may require further investigation to understand the reasons behind the decline in revenue generation from fixed assets.