Dave & Buster’s Entertainment (PLAY)

Days of sales outstanding (DSO)

		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
Receivables turnover		90.21	333.71	61.76	96.80	73.55	36.39	43.83	—	19.16	15.31	—	—	6.23	—	—	—	—	—	—	—
DSO	days	4.05	1.09	5.91	3.77	4.96	10.03	8.33	—	19.05	23.84	—	—	58.59	—	—	—	—	—	—	—

February 4, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 90.21
= 4.05

The Days of Sales Outstanding (DSO) ratio for Dave & Buster’s Entertainment, which measures the average number of days it takes for the company to collect revenue after a sale has been made, has shown variability over the reporting periods.

The DSO trend indicates the company’s efficiency in managing its accounts receivable. In the most recent financial statement, as of February 4, 2024, the DSO was calculated at 4.05 days, reflecting a relatively efficient collection process. This was an improvement compared to the previous quarter when DSO was at 5.91 days as of July 30, 2023.

The lowest DSO value within the provided data was recorded on October 29, 2023, at 1.09 days, signifying a very efficient collection cycle at that point in time. Conversely, the highest DSO values were observed on January 31, 2021, at 58.59 days, indicating a longer collection period and potentially highlighting challenges in collecting revenue efficiently during that period.

Generally, a lower DSO is favorable as it indicates that the company is collecting revenue quickly, which can improve cash flows and liquidity. On the contrary, a higher DSO may suggest issues with collections processes or potential credit risks. Monitoring the DSO trend over multiple periods provides insights into the effectiveness of the company's accounts receivable management strategies.