Dave & Buster’s Entertainment (PLAY)
Days of inventory on hand (DOH)
| Feb 4, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.06 | 7.71 | 7.72 | 6.87 | 6.80 | 6.09 | 5.39 | 5.65 | 5.08 | 4.57 | 5.70 | 3.80 | 3.15 | 4.28 | 4.77 | 5.75 | 6.77 | 7.12 | 8.35 | 7.59 | |
| DOH | days | 40.29 | 47.35 | 47.31 | 53.11 | 53.65 | 59.94 | 67.75 | 64.56 | 71.80 | 79.83 | 64.08 | 96.14 | 116.01 | 85.26 | 76.55 | 63.48 | 53.94 | 51.24 | 43.70 | 48.06 |
February 4, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.06
= 40.29
The days of inventory on hand (DOH) for Dave & Buster’s Entertainment have shown some fluctuations over the past few periods. The trend indicates that the company has been able to manage its inventory levels efficiently in some periods while facing challenges in others.
From Feb 4, 2024, to May 3, 2020, we observe a general downward trend in the DOH ratio, suggesting that the company has improved its inventory management efficiency during this period. This decline indicates that Dave & Buster’s is selling its inventory at a faster rate relative to its cost of goods sold.
However, there are periods where the DOH ratio increased significantly, such as from May 2, 2021, to Oct 31, 2021, which reached a peak of 79.83 days. This could indicate potential issues with inventory management, such as overstocking or lower-than-expected sales, leading to a buildup of inventory on hand.
Overall, the company’s management should continue to monitor and fine-tune its inventory management processes to ensure optimal inventory levels that support sales while minimizing carrying costs and potential obsolescence.
Peer comparison
Feb 4, 2024