Dave & Buster’s Entertainment (PLAY)

Fixed asset turnover

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Revenue	US$ in thousands	2,066,500	1,875,440	1,243,140	436,512	1,354,690
Property, plant and equipment	US$ in thousands	1,332,700	1,180,200	778,597	815,027	900,637
Fixed asset turnover		1.55	1.59	1.60	0.54	1.50

February 4, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,066,500K ÷ $1,332,700K
= 1.55

Dave & Buster’s Entertainment has shown some fluctuations in its fixed asset turnover ratio over the past five years. The ratio measures how efficiently the company utilizes its fixed assets to generate revenues.

In the most recent year, as of Feb 4, 2024, the fixed asset turnover ratio stands at 1.55, indicating that for every dollar invested in fixed assets, the company generated $1.55 in revenue. This suggests a moderate level of efficiency in utilizing fixed assets to generate sales.

Comparing this to the previous years, there was a slight decline from 1.59 in 2023 to 1.55 in 2024, although the ratio still remains relatively stable within a close range. This indicates that the company has been able to maintain a consistent level of efficiency in using its fixed assets for revenue generation.

In contrast, there was a significant improvement in 2022 with a fixed asset turnover ratio of 1.60, showing a more efficient utilization of fixed assets to generate sales. However, in 2021, the ratio dropped sharply to 0.54, suggesting that the company struggled to effectively leverage its fixed assets to drive revenues.

Overall, the trend in Dave & Buster’s fixed asset turnover ratio over the past five years reflects some variability, with periods of both efficiency and inefficiency in utilizing fixed assets to generate sales. It is important for the company to continue monitoring and optimizing its use of fixed assets to ensure sustained operational efficiency and profitability.