Dave & Buster’s Entertainment (PLAY)

Days of inventory on hand (DOH)

		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
DOH	days	40.29	53.65	71.80	116.01	53.94

February 4, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.06
= 40.29

Dave & Buster’s Entertainment's days of inventory on hand (DOH) have fluctuated significantly over the past five years. The company managed to reduce its inventory holding period from 116.01 days on January 31, 2021, to 40.29 days on February 4, 2024, reflecting an improvement in inventory management efficiency. The lowest DOH figure achieved was on February 4, 2024, implying that the company was able to sell its inventory faster during that period.

However, it is worth noting that there was a spike in DOH to 71.80 days on January 30, 2022, which indicates a slowdown in inventory turnover during that fiscal year. Despite this fluctuation, Dave & Buster’s DOH has generally remained in the range of 40-70 days over the past five years, except for the outlier in 2021. This trend suggests that the company has been able to effectively control its inventory levels to meet demand and minimize carrying costs.

Overall, the decreasing trend in days of inventory on hand for Dave & Buster’s Entertainment reflects improved inventory management efficiency and better control over inventory turnover, which is a positive indicator for the company's operations.