Dave & Buster’s Entertainment (PLAY)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	337,000	333,764	337,164	329,164	308,864	276,676	253,089	235,200	204,971	170,336	135,631	86,604	74,905	114,447	148,719	199,658	233,311	232,362	228,916	224,849
Inventory	US$ in thousands	37,200	43,300	43,700	47,900	45,400	45,432	46,977	41,601	40,319	37,256	23,811	22,812	23,807	26,732	31,189	34,726	34,477	32,620	27,409	29,609
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

February 4, 2024 calculation

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

Dave & Buster’s Entertainment has shown a fluctuating trend in its inventory turnover ratio over the past several periods. The inventory turnover ratio measures how efficiently a company manages its inventory by calculating how many times the company sells and replaces its inventory within a specific period.

The inventory turnover ratio for Dave & Buster’s has ranged from a low of 3.15 to a high of 9.06 over the periods provided. A higher inventory turnover ratio generally indicates that a company is selling its inventory more quickly and efficiently. In Dave & Buster’s case, the inventory turnover ratio has generally been above 5, suggesting that the company is effectively managing its inventory.

However, it's important to note the fluctuations in the inventory turnover ratio. A decreasing trend in the ratio may indicate potential issues such as overstocking, slow-moving inventory, or changes in consumer demand. Conversely, an increasing trend could signal improved inventory management practices or strong sales performance.

Overall, a thorough analysis of the factors influencing inventory turnover, such as operational efficiency, demand forecasting, and inventory management strategies, would provide a more comprehensive understanding of Dave & Buster’s performance in this area.