Dave & Buster’s Entertainment (PLAY)

Payables 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
Payables	US$ in thousands	118,600	84,700	62,493	36,400	65,359
Payables turnover		2.84	3.65	3.28	2.06	3.57

February 4, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $337,000K ÷ $118,600K
= 2.84

Dave & Buster’s Entertainment payables turnover has fluctuated over the past five years. The payables turnover ratio measures how effectively the company is managing its accounts payable by indicating how many times during a period the company pays off its average accounts payable balance.

In the most recent fiscal year ending February 4, 2024, the payables turnover ratio was 2.84, indicating that the company paid off its accounts payable approximately 2.84 times during that period. This represents a decrease from the previous year’s ratio of 3.65.

Comparing this data to previous years, Dave & Buster’s payables turnover was highest in January 2023 at 3.65 and lowest in January 2021 at 2.06. The fluctuations in the payables turnover ratio suggest varying levels of efficiency in managing accounts payable over the years.

A decreasing payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, which could potentially strain supplier relationships if not managed effectively. On the other hand, a higher payables turnover ratio may suggest that the company is paying off its suppliers more quickly, which could indicate strong cash flow management.

Overall, Dave & Buster’s Entertainment should continue to monitor its payables turnover ratio to ensure efficient management of its accounts payable and maintain healthy relationships with its suppliers.