Dave & Buster’s Entertainment (PLAY)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 4, 2024	Jan 31, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Cost of revenue (ttm)	US$ in thousands	518,800	531,600	937,000	928,000	709,100	702,400	312,800	330,300	344,552	348,016	340,671	326,571	315,055	297,991	542,130	520,806	500,146	482,759	220,076	222,911
Inventory	US$ in thousands	39,800	38,400	37,200	37,800	37,200	37,200	43,300	43,300	43,700	43,700	47,900	45,400	45,400	45,432	45,432	46,977	41,601	41,601	40,319	40,319
Inventory turnover		13.04	13.84	25.19	24.55	19.06	18.88	7.22	7.63	7.88	7.96	7.11	7.19	6.94	6.56	11.93	11.09	12.02	11.60	5.46	5.53

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $518,800K ÷ $39,800K
= 13.04

The inventory turnover ratio for Dave & Buster’s Entertainment has shown fluctuating trends over the past few years. The ratio represents how many times a company's inventory is sold and replaced over a certain period.

From January 30, 2022, to January 31, 2024, the inventory turnover ratio ranged from around 5.46 to 19.06. This indicates variations in how efficiently the company is managing its inventory during this period.

A significant increase in the inventory turnover ratio is noted between January 31, 2024, and April 30, 2024, reaching 24.55. This suggests that the company was able to sell and replace its inventory at a much faster rate during this period, potentially indicating improved inventory management or increased demand for its products.

Subsequently, the ratio decreased to 13.84 by October 31, 2024, suggesting a lower rate of inventory turnover compared to the previous period. However, it should be noted that this ratio is still relatively higher than the initial values observed in early 2022.

Overall, the inventory turnover ratio for Dave & Buster’s Entertainment has shown varying levels over the analyzed period, reflecting changes in the company's inventory management efficiency and sales performance. A higher turnover ratio generally indicates better utilization of inventory and liquidity, while a lower ratio may suggest overstocking or sluggish sales.