Dave & Buster’s Entertainment (PLAY)

Days of sales outstanding (DSO)

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Receivables turnover		90.24	73.47	19.15	6.23	581.16
DSO	days	4.04	4.97	19.06	58.59	0.63

February 4, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 90.24
= 4.04

The days of sales outstanding (DSO) for Dave & Buster’s Entertainment has exhibited a decreasing trend over the past five fiscal years. As of February 4, 2024, the DSO stands at 4.04 days, reflecting the company's ability to collect its accounts receivable efficiently. This improvement is significant when compared to the DSO of 4.97 days reported on January 29, 2023, indicating a more streamlined receivables management process.

Moreover, the DSO has shown a notable decline from 19.06 days on January 30, 2022, and a substantial decrease from 58.59 days on January 31, 2021, which is particularly impressive. The extremely low DSO of 0.63 days on February 2, 2020, may have been an anomalous figure, but it signifies an exceptional performance in accounts receivable management.

Overall, the decreasing trend in DSO over the years suggests that Dave & Buster’s Entertainment has been efficiently managing its receivables, indicating a more effective credit and collections process. This positive trend is indicative of improved cash flow and liquidity for the company.