Dave & Buster’s Entertainment (PLAY)

Inventory turnover

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cost of revenue	US$ in thousands	337,000	308,900	204,971	74,905	233,311
Inventory	US$ in thousands	37,200	45,400	40,319	23,807	34,477
Inventory turnover		9.06	6.80	5.08	3.15	6.77

February 4, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $337,000K ÷ $37,200K
= 9.06

The inventory turnover ratio for Dave & Buster’s Entertainment has shown an increasing trend over the past five years. Inventory turnover measures how efficiently a company manages its inventory by calculating how many times during a period inventory is sold and replaced.

In the most recent fiscal year ending on February 4, 2024, the inventory turnover ratio was 9.06, indicating that the company sold and replaced its inventory approximately 9.06 times during that year. This represents a significant improvement compared to the previous years.

In the fiscal year ending January 29, 2023, the inventory turnover was 6.80, followed by 5.08 in 2022 and 3.15 in 2021. The significant increase from 2021 to 2022 and then to 2023 indicates that Dave & Buster’s has been managing its inventory more efficiently, possibly by reducing excess inventory or improving inventory management processes.

It should be noted that the inventory turnover ratio was 6.77 in the fiscal year ending February 2, 2020. The fall in 2021 followed by the subsequent rise in the following years suggests fluctuations in the company's inventory management practices.

Overall, the increasing trend in Dave & Buster’s inventory turnover ratio indicates better inventory management efficiency and reflects positively on the company's operational performance in recent years.